Harbour Trust Annual Report 2015-2016 This work is copyright. Apart from any use as permitted under the Copyright Act 1958, no part may be reproduced by any process without written permission from the Sydney Harbour Federation Trust.
For more information about this report and all Sydney Harbour Federation Trust publications, contact: Media & Communications Executive Sydney Harbour Federation Trust PO Box 607 Mosman NSW 2088 Telephone: 02 8969 2100 Email: [email protected] For information about the Sydney Harbour Federation Trust, or to view this report online, visit the website at www.harbourtrust.gov.au
Cover Shot: Sydney Harbour at night, Harbour View Apartment, Cockatoo Island. Credit: Geoff Magee. Inside front cover: Water treatment. Credit: Sarah Nguyen. Inside back cover: Water treatment. Credit: Sarah Nguyen. Letter from the Chair to the Minister
30 September 2016
The Hon. Josh Frydenberg, MP Minister for the Environment and Energy Parliament House Canberra ACT 2600
Dear Minister,
I present the report on the operations of the Sydney Harbour Federation Trust for the year ended 30 June 2016, which was approved at the Harbour Trust Board meeting on 15 September 2016. The report complies with the provisions of section 70 of the Sydney Harbour Federation Trust Act 2001 and section 46 of the Public Governance, Performance and Accountability Act 2013.
Yours sincerely, HARBOUR TRUST ANNUAL REPORT
Kevin McCann, AM Chair 2015-16
1 Aerial view of Cockatoo Island. Credit: Mark Merton. Contents Letter to the Minister...... 1 Chair’s Foreword...... 4 Executive Director’s Summary...... 6
The Sydney Harbour Federation Trust...... 8 Vision...... 8 Purpose...... 8 Objectives...... 8 Functions...... 8 The Sites...... 9 Legislation and Minister...... 9 Organisational Structure...... 9 Harbour Trust Board...... 10 Annual Performance Statements...... 14 Regulator Performance Framework...... 22 Analysis of performance against Purpose...... 26 Urban Parklands & Asset Management...... 28 Major Capital Works and Maintenance Projects...... 29 Harbour Trust plans and environmental assessments...... 32 Environmental performance...... 33 Engagement...... 40 Engagement Projects...... 41 Advertising and market research...... 42 Communications...... 42 Community Engagement...... 45 Volunteers...... 45 Rangers...... 45 Growth & Enterprise...... 46 Commercial Leasing...... 47 Residential Leasing...... 47 Licencing and venue hire...... 47 Accommodation...... 48 Innovation & Operations...... 50 Corporate governance...... 51 Procurement...... 52 Tendering and contracting...... 52 Human Resources...... 52 Access and safety...... 53 HARBOUR TRUST ANNUAL REPORT 2015-16 Equity and diversity...... 54 Judicial decisions and reviews by outside bodies...... 54 Ministerial directions...... 54 Independent Audit Report...... 56 Financial Statements...... 58 Appendix 1. Freedom of Information...... 90 Appendix 2. Community Advisory Committee members...... 91 Appendix 3. Maintenance, heritage conservation and environmental management projects...... 92 Compliance Index...... 94 Index...... 95 3 Chair’s Foreword
In my second year as returning Chair of the As part of this process, a joint Middle Head Planning Sydney Harbour Federation Trust (Harbour Information Day was held by both of us in May 2016. Trust), we are firmly focused on ensuring The public feedback gathered from the event has informed both organisations in the preparation of that its management of the Harbour Trust their plans for their lands at Middle Head. We are land contributes to the amenity of the targeting October 2016 to have both plans on display Sydney Harbour region. In pursuing this for public comment. objective we seek to maximize public At North Head Sanctuary in Manly, we are pursuing visitation of our sites. opportunities for adaptive reuse of former army buildings. In the forthcoming year, Cockatoo Island will continue The Harbour Trust has undertaken some significant to be a focus of attention, with significant heritage projects during the past financial year. The conservation works to commence on the World organisation’s major remediation project over the last Heritage-listed convict workshops. The island’s convict six years (2010-16) has been the decontamination of and reformatory school history will take centre-stage the former HMAS Platypus site at North Sydney. with the launch of the Ghosts of Biloela geo-locative These extensive below-ground remediation works were app and the Convict Footprints on Cockatoo Island completed within budget during the reporting period. production. These initiatives will help to reinforce In November 2015, the federal government provided Cockatoo Island’s role as an important cultural venue a one-off contribution of $20 million to the Harbour and popular Sydney destination. We are also working on Trust to enable it to undertake the first stage of the plans to make the island a more attractive destination redevelopment of the Platypus site into a public park for visitors, which will require improved curatorship of and the adaptive reuse of buildings on the site. This heritage sites, better food and beverage outlets and contribution was in accordance with the promise made other attractions. by the Howard Government to fund remediation of the The program of review of the Harbour Trust’s Plans land after decontamination was completed. will continue with the support and involvement of On behalf of the Harbour Trust, I would like to express the community, which has always been crucial to the our thanks to the Hon. Joe Hockey, the former success of the Harbour Trust. As the organisation Treasurer, the Hon. Greg Hunt MP, the former Minister considers these plans for its sites around Sydney’s for the Environment and Trent Zimmermann, MP, the magnificent harbour, it remains committed under my member for North Sydney, for their support and help stewardship to consulting closely with the community in securing this funding. to ensure that it maximises public access and continues to rehabilitate the natural values of these great The funding of Platypus will be utilised to maximise national assets. public access and for the adaptive restoration of buildings. The public feedback from the Planning Open The Harbour Trust does not receive annual budget Day held on the site in May 2016 has informed the appropriations from the Federal Government so its preparation of a Draft Management Plan for Platypus, ability to maintain its ongoing operations requires which was exhibited for comment in August financial self-sufficiency. The organisation derives most - September 2016. of its revenue to meet operating costs from its leasing and licensing activities from restored landscapes and At Middle Head in Mosman, the Harbour Trust is buildings. Capital grants are generally received in working in partnership with the NSW National Parks response to applications to the Federal Government and Wildlife Service (NPWS) on the future of Middle in respect to capital program requests for heritage Head. The two agencies are collaborating in their restoration. In most cases they are relatively modest planning and community consultation for the site’s and range from $100,000 to $1 million, paid over a
www.harbourtrust.gov.au future with the aim of creating a unified parkland three-year period. experience and adaptive reuse of buildings. 4 Three new members of the Harbour Trust Board For the Board, the years ahead are promising. We look were appointed in 2016: Mr Joseph Carrozzi, Ms Sally forward to a close and productive working relationship Herman and Ms Sandra Hook, who was previously a with the Executive Director, the Trust’s management Trustee from 2011-15 has been reappointed. They all team, staff and volunteers, and a continuing close bring a range of skills and experience. association with the community, both individually and I would like to thank my fellow Board members for collectively, who continue to support and take a keen their work during 2015-16 and acknowledge the interest in the Harbour Trust’s work. significant contribution of outgoing members, the Hon. Leo McLeay, Rohan Jeffs and Paula Braxton-Smith. The Harbour Trust has the opportunity to build on their achievements and to continue to provide a lasting legacy for the people of Australia by creating and preserving its wonderful urban foreshore parklands. Kevin McCann, AM The Executive Director of the Harbour Trust has been seconded to Parks Australia for a period of twelve months ending January 2017. In his absence, Dr Susan Culverston has been appointed Acting Executive Director. We thank her for her contribution to the Harbour Trust while she has held office. I would also like to welcome the incoming Minister responsible for the Sydney Harbour Federation Trust, the Hon Josh Frydenberg, MP, Minister for the Environment and Energy, and to acknowledge the support and encouragement of the Hon. Greg Hunt, MP, Minister for the Environment, and the Hon. Bob Baldwin, MP, Parliamentary Secretary for the Environment during 2015-16.
RIGHT David Koch, Samantha Armytage and Justin Bieber, Cockatoo Island September 2015. Credit: Zakarij Kaczmarek. BOTTOM LEFT Geoff Bailey, Kevin McCann and Susan Culverston at the Middle Head Planning Information Day, May 2016. Credit: Ian Evans. BOTTOM RIGHT William Forsythe, Nowhere and everywhere at the same time, No. 2 2013. Credit: Geoff Magee. HARBOUR TRUST ANNUAL REPORT 2015-16
5 Executive Director’s Summary
The 2015-16 financial year was the first Sunrise program and the Kyle and Jackie O show on reporting period during which the KIIS 1065. Many people visited Cockatoo Island for events such as the 20th Biennale of Sydney (when Harbour Trust reported against its 2015- the island was transformed into the Embassy of the 19 Corporate Plan, as now required under Real), the Underbelly Arts Festival and Lab and the the Public Governance, Performance and Harbour Trust’s own convict history tours, free guided Accountability Act (2013). The full details tours, free heritage steam crane demonstrations of the organisation’s outcomes against its and guided education group visits. Our heritage houses, apartments and waterfront campground performance criterion and key result areas remain an appealing drawcard for visitors. The first- are outlined in the Annual Performance ever Cockatoo Island Accommodation Open Day in Statements. It is satisfying to report that February 2016 encouraged hundreds of people to our overall results indicate we are well on view the houses and apartments, as well as attracting target to meet our 2019 Key Performance significant media interest. Indicators and that the organisation has In 2015-16, we increased our focus on improving the visitor experience at Headland Park in Mosman. At posted a small operating surplus Chowder Bay, the new Discovery Centre at the Sydney of $459,000. Institute of Marine Science (SIMS) opened and we completed the refurbishment of the historic Chowder Community consultation has always been at the centre Bay Wharf. The Lower Georges Heights precinct of the Harbour Trust’s endeavours. During the period welcomed its third Macquarie Group Prize-winning reported, it was a key focus for the organisation. sculpture from Sculpture by the Sea, Jorg Plickat’s The Board approved a restructure of the Community Divided Planet, which was generously donated by the Advisory Committee (CAC), which provided for Macquarie Group to the Harbour Trust. The popular representation across all of our sites, allowed for walking track between Georges Head Lookout and general membership with relevant experience, and, for Middle Head Road was repaired and upgraded and we the first time, included an Indigenous representative. constructed a new harbour lookout on the Georges Community liaison activities increased at Cockatoo Heights parade ground which also serves as an Island, North Head Sanctuary, Headland Park in elevated podium for the ANZAC Day Dawn Service. Mosman and the Platypus site in North Sydney in At North Head Sanctuary, we added Saturday tours to 2015-16. In particular, there was a high level of our regular North Fort tours for the summer holiday community engagement with the Harbour Trust’s two period. This initiative resulted in a 50% increase in on-site Planning Open Days at Platypus and Middle attendances and received excellent media coverage. Head in May 2016. Over 600 people attended the The Harbour Trust commenced an archaeological Platypus event while more than 350 people turned research project in the Third Quarantine Cemetery. out for the Middle Head Planning Information Day, This project was largely funded by a grant from the which was held jointly with the NPWS. The information Department of the Environment’s Protecting National sessions at both events were very well-attended and Historic Sites Programme 2014-15, and the project also the organisation received hundreds of submissions. received strong media interest. In partnership with the The public feedback from these events has played an Royal Australian Artillery Historical Company (RAAHC), important role in informing the preparation of our draft we opened the Sir Roden Cutler VC Artillery Research management plans for both sites. Centre in April 2016. Cockatoo Island continued to enjoy strong visitation The Harbour Trust’s Property and Business Development from both locals and tourists. In September 2015, Business Unit yielded strong results from its leasing it reached a national and global audience when we portfolio and licensing initiatives in 2015-16. Approval hosted Canadian singer Justin Bieber in a special was granted for a marina and dry stack operation www.harbourtrust.gov.au live performance jointly broadcast by Channel 7’s
6 in Cockatoo Island’s Sutherland Dock precinct and the Conservation Objects Award at National Trust NSW important new tenants were welcomed at Headland Park Heritage Festival Awards. The Harbour Trust and its and North Head Sanctuary. Cockatoo Island remained an team of volunteers were congratulated by the awards’ attractive location for corporate venue hire events and judges “for saving such an important part of our commercial filming projects. Channel Seven’s top-rating industrial heritage and the entire industrial landscape My Kitchen Rules program filmed their “Fishmongers of Fitzroy Dock”. On behalf of the Harbour Trust, Challenge” episode on Cockatoo Island and the I would like to express our sincere gratitude to all of Australian Wallabies rugby union team held a training our volunteers. camp on the island in April 2016. Finally, I would like to acknowledge our staff. During Important remediation, conservation and refurbishment the second half of the reporting period, the Harbour works were undertaken in 2015-16. The completion of Trust’s Executive Director, Geoff Bailey, was on the below-ground decontamination and remediation secondment to Parks Australia. Our staff once again works at the former HMAS Platypus site at North Sydney met the challenges of our ever-changing workplace was a significant achievement for the organisation. On with hard work, dedication and creativity and to them Cockatoo Island, extensive remediation works were Geoff and I are immensely grateful. completed on the chimney of the former Powerhouse and a new potable water main was installed between Balmain and the island. At North Head Sanctuary, North Fort’s miniature range was reconstructed and remedial works were undertaken to the underground Dr Susan Culverston Plotting Room. Acting Executive Director Volunteers have always played an important role in the development of the Harbour Trust. In 2015-16, they provided over 28,500 hours of dedicated work, helping with our organisation’s events and projects. The ongoing work of our Cockatoo Island heritage restoration volunteers in restoring the heritage cranes around the Fitzroy Dock received official acknowledgement during this reporting period. In May 2016, we were awarded
RIGHT Filling out surveys. Middle Head Planning Information Day, May 2016. Credit: Ian Evans. BOTTOM LEFT Harbour Trust staff, Middle Head Planning Information Day, May 2016. Credit: Ian Evans. BOTTOM RIGHT Divided Planet, 2016 Sculpture by the Sea major prize winner, Headland Park, Mosman. Credit: Zakarij Kaczmarek. HARBOUR TRUST ANNUAL REPORT 2015-16
7 The Sydney Harbour Federation Trust
Vision To provide a lasting legacy for the people of Australia by helping to create the finest foreshore park in the world and provide places that will greatly enrich the cultural life of the city and nation.
Purpose Functions Enhance appreciation and understanding of the natural The functions of the Sydney Harbour Federation and cultural values of Sydney for all visitors, through Trust are:
the remediation, conservation and adaptive re-use of, ● to hold Harbour Trust land for and on behalf and access to, Harbour Trust lands on Sydney Harbour. of the Commonwealth.
● to undertake community consultation on the Objectives management and conservation of Harbour Trust The objectives of the Sydney Harbour Federation land. Trust are: ● to develop draft plans in respect of Harbour Trust land and any other harbour land in furthering the ● to ensure that management of Harbour Trust land contributes to enhancing the amenity of objects, and performing other functions, of the the Sydney Harbour region. Harbour Trust. ● to rehabilitate, remediate, develop, enhance ● to protect, conserve and interpret the environmental and heritage values of Harbour and manage Harbour Trust land, by itself or in Trust land. co-operation with other institutions or persons, in accordance with the plans. ● to maximise public access to Harbour Trust land. ● to make recommendations to the Minister on ● to establish and manage suitable Harbour Trust plans and the proposed transfer of any Harbour land as a park on behalf of the Commonwealth as Trust land. the national government. ● to promote appreciation of Harbour Trust land, in ● to co-operate with other Commonwealth bodies particular its environmental and heritage values. that have a connection with any harbour land in managing that land. ● to provide services and funding to other Commonwealth bodies in furthering the objects, ● to co-operate with the government of New South and performing other functions, of the Wales, affected councils and the community in Harbour Trust. furthering the above objectives. ● anything incidental to or conducive to the performance of its other functions. www.harbourtrust.gov.au
8 The sites
MANLY
DOBROYD HEAD
NORTH HEAD SANCTUARY, MANLY [MAP TO BE SUPPLIED] BALMORAL MIDDLE HEAD
SOUTH HEAD GEORGES River HEIGHTS Lane Cove MARINE BIOLOGICAL CHOWDER BAY WOOLWICH STATION DOCK AND PLATYPUS, WATSONS PARKLANDS NEUTRAL BAY Parra BAY matta BALLS River COCKATOO NIELSON HEAD ISLAND CREMORNE PARK POINT KIRRILBILLI BIRCHGROVE HARBOUR DRUMMOYNE SNAPPER GOAT BRADLEYS MACQUARIE BRIDGE ISLAND ISLAND FORT HEAD LIGHTSTATION DENISON BALMAIN BENNELONG EAST POINT GARDEN IRON COVE ISLAND SYDNEY CBD SYDNEY HARBOUR FEDERATION TRUST SITES
Legislation and Minister The Harbour Trust was established under section 5 of the Sydney Harbour Federation Trust Act 2001 which commenced on 20 September 2001. In the year reported, the Minister for the Environment, the Hon. Greg Hunt, MP, was responsible for the Harbour Trust.
Organisational structure The affairs of the Harbour Trust are managed, subject to the directions of and in accordance with the policies of the Harbour Trust, by the Acting Executive Director, Dr Susan Culverston. During the year, the Harbour Trust operated from its offices at Georges Heights, Mosman, Sydney.
EXECUTIVE DIRECTOR HARBOUR TRUST ANNUAL REPORT 2015-16
Deputy Executive Director & Chief Financial Officer
Director, Property Director, Marketing, Director, Asset Communications Management & Business Development & Visitor Experience & Operations
9 Harbour Trust Board
The Harbour Trust Board meets regularly There are eight board members including the to discuss issues relating to all the Chair, two members recommended by the sites, including planning, maintenance NSW Government, one member representing of buildings and structures, and the the interests of indigenous people and opening of sites to the public. one elected member from a council area containing a Harbour Trust site. All board members are non-executive members.
Board members
Chair Members Mr Kevin McCann, AM Former Councillor Jean Hay, AM Mr McCann was reappointed as the Former Councillor Jean Hay is Non-Executive Chair and Director a lifelong resident of Manly and of the Sydney Harbour Federation was elected to Manly Council in Trust in 2015. He is Chairman 1987. Mrs Hay served as Mayor of of Citadel Group Limited and Manly from 1999 to 2004 and from Dixon Hospitality Limited and is a 2008 to 2012. At the September member of the Male Champions 2012 Council elections, she was of Change, a Fellow of the Senate of the University re-elected as Mayor for a further four-year term. In May of Sydney, Co-Vice Chair of the New Colombo Plan 2016, the NSW Government announced that former Reference Group, a Director of the US Studies Centre and Manly, Warringah and Pittwater Councils would merge Chair of the National Library of Australia Foundation. to form a new Northern Beaches Council. Mrs Hay was Mr McCann is a former Chairman of Macquarie Group appointed Chair, Implementation Advisory Group, and Limited, Macquarie Bank Limited, Origin Energy Limited, Chairperson, Local Representation Committee – Social Healthscope Limited and ING Management Limited. for the Northern Beaches Council. She has served on From 1998-2001, Mr McCann was Chair of the Interim all major Council Committees and numerous other Sydney Harbour Federation Trust, then from 2001-2010, Committees. In June 1998, she was awarded Membership Chair of the Sydney Harbour Federation Trust. of the Order of Australia (AM) for service to the community through local government, community action He practised as a Commercial Lawyer and as a Partner and sporting groups, and fundraising for welfare and of Allens Arthur Robinson from 1970 to 2004 and was health education programmes. In 2001, she was awarded Chairman of Partners from 1995 to 2004. Mr McCann a Centenary Medal. Mrs Hay has also been presented has a Bachelor of Arts and Law (Honours) from Sydney with numerous other awards including the 2010 NSW University and a Master of Law from Harvard University. Ministers’ Awards for Women in Local Government He was made a Member of the Order of Australia (AM) (Metropolitan Elected Representative). She has played for services to the Law, Business and the Community a major role in the realisation of Bear Cottage, the only in 2005. children’s hospice in the State. Her contribution to this project has resulted in her being bestowed as Benefactor of the Children’s Hospital Westmead. www.harbourtrust.gov.au
10 Mr Joseph Carrozzi Ms Sally Herman Mr Carrozzi was appointed as Ms Herman was appointed as a non-executive member of a non-executive member of the Board in April 2016. He is the Board in April 2016. She is a lawyer and financial advisor an experienced Non-Executive with over 25 years experience in Director in the fields of financial the professional services sector. services, retail, manufacturing Mr Carrozzi is Managing Partner and property. She had a of PwC, Sydney, the largest professional services successful executive career in financial services in both firm in Australia, and has advised many businesses Australia and the US, transitioning in late 2010 into and governments on infrastructure, tax and policy a full-time career as a Non-Executive Director. Prior matters. He is responsible for leading the more than to that, Ms Herman spent 16 years with the Westpac 3,000-strong team at PwC in Sydney. Mr Carrozzi plays Group, running major business units in most operating an active role in our community. He is the Chairman of divisions of the Group, including the Institutional Bank, the Italian Chamber of Commerce and Vice Chairman Wealth Management (BT Financial) and the Retail and of the GWS Giants AFL team, he is on the Board of Business Banking division. Her last role at Westpac was the NSW Institute of Sport and is a Governor of the heading up Corporate Affairs and Sustainability, a role Centenary Institute for Medical Research in Sydney. she held through the merger with St. George and the global financial crisis. Ms Josephine Cashman Ms Herman now sits on both listed and unlisted Ms Cashman is a Worimi Boards, including three ASX 200 companies, Suncorp entrepreneur from New South Group Limited, Premier Investments Limited and Wales. She is a lawyer, business Breville Group Limited. She is also on the Board of woman and social entrepreneur Investec Property Limited and on the advisory board with more than 17 years of of Evans & Partners. experience working to create Ms Herman chairs the Board of an independent girls’ rapid business, social and school in Sydney, and is actively involved in the economic growth for Indigenous communities around community, with a particular interest in education, Australia. In 2013, Ms Cashman was appointed by the the arts and disability. She is a member of Chief Prime Minister to the Indigenous Advisory Council and Executive Women. serves as Chair of its Safe Communities Committee. As a lawyer with a Graduate Diploma in Legal Ms Sandra Hook Practice, and a Bachelor of Laws and Communications Ms Hook was re-appointed as (Journalism) from UTS, Ms Cashman worked for more a non-executive member of than nine years in the Australian courts, and has HARBOUR TRUST ANNUAL REPORT 2015-16 the Board in April 2016. She is worked in consultancy and voluntary roles for a variety a professional non-executive of private, public and non-profit sector organisations. director and an investor in early stage digital businesses. Since 2000, Ms Hook has also served on a number of Australian boards including listed, private and government organisations. She has a passion for place-making and the visitor economy and brings significant experience providing leadership
11 Harbour Trust Board
to businesses impacted by technological and digital Mr Rohan Jeffs disruption. Ms Hook has extensive operational, Mr Jeffs was a non-executive financial management, strategic and brand-building director of the Harbour Trust for experience acquired over a 25-year executive career. five years until his appointment She held senior executive positions within Foxtel, expired in May 2016. He is Federal Publishing Company, Murdoch Magazines, a lawyer with over 35 years Fairfax, ACP and News Limited where she was CEO of experience in major listed NewsLifeMedia. Ms Hook is currently a non-executive Australian companies in the areas director of RXP Services, Ive Group, MedAdvisor and of corporate and commercial law as well as in senior The Sydney Fish Markets, the Chair of WYZA Limited, corporate roles responsible for governance, risk and a Trustee of the Royal Botanic Gardens & Domain Trust compliance; human relations; procurement; industrial and a Director of the Sydney Harbour Conservancy. relations; superannuation; government and corporate relations. He is a Director of the Retail Employees At the time of reporting, there are two Board Superannuation Trust (REST), and is Chairman of the member positions vacant. REST Strategy Review Committee and Human Relations and Remuneration Committee. Mr Jeffs is an Adjunct Professor of Law at the University of Queensland and Outgoing Members he holds a Masters of Law, Bachelor of Law and a Bachelor of Arts from the University of Sydney. He has Ms Paula Braxton-Smith extensive experience in commercial, legal, governance Ms Braxton-Smith was a member and regulatory matters. of the Board until her appointment expired in May 2016. She is an The Hon. Leo McLeay experienced Project Manager, Mr McLeay was a member of researcher and policy adviser. the Board until his appointment At specialist communications expired in May 2016. He was consultancy KJA, she delivers a Member of the House of stakeholder engagement, community consultation and Representatives from 1979 until project management for a wide variety of government 2004. His parliamentary career and private sector clients across the planning, housing, included four years as Speaker infrastructure and environment sectors. As a Project of the House of Representatives. He also held the Manager at the University of Technology Sydney (UTS), office of Deputy Speaker and Chief Government she has led teams of social researchers based at the and Opposition Whip and he chaired a number of Australian Centre of Excellence for Local Government, Parliamentary Committees. Mr McLeay is Chair of the to assist councils and other external clients to evaluate Catholic Cemeteries Board which manages a number programs, projects, proposed service delivery changes of heritage cemeteries in Sydney and was a member of and asset decisions. She has extensive prior experience the Interim NSW Cemeteries and Crematoria Board. He in government as a policy adviser in the portfolio is a Director of the Sydney Harbour Conservancy. He is areas of Agriculture and Food; Industry and Trade; and a former Director of the Mary MacKillop Foundation. Mineral Resources Development. As a local Mosman resident, she remains a regular user of Harbour Trust sites in that council area and beyond. Ms Braxton-Smith holds a Bachelor of Agricultural Science degree with honours in Animal Sciences. www.harbourtrust.gov.au Performance at Underbelly Arts 2015, Bolt Wharf, 12 Cockatoo Island. Credit: Geoff Magee.
Annual Performance Statements
INTRODUCTORY STATEMENT
We, the Sydney Harbour Federation Trust Board, as the accountable authority of the Sydney Harbour Federation Trust, present the 2015-16 annual performance statements of the Sydney Harbour Federation Trust, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). In our opinion, these annual performance statements are based on properly maintained records, accurately reflect the performance of the entity, and comply with subsection 39(2) of the PGPA Act.
ENTITY PURPOSE
Enhance appreciation and understanding of the natural and cultural values of Sydney for all visitors, through the remediation, conservation and adaptive re-use of, and access to, Harbour Trust lands on Sydney Harbour. To achieve this purpose, the Harbour Trust identified five key result areas with performance criterion in its Corporate Plan for 2015-2019 to ensure that the organisation is on target to meet its strategic goals.
Georges Heights walkway, Headland Park, Mosman. Credit: Zakarij Kaczmarek. STRATEGIC GOAL 1 PERFORMANCE CRITERION
Urban Parklands: Preserve, enhance and promote the rich historical, cultural and natural values embodied in the Harbour Trust’s lands CRITERION SOURCE
2015-2019 Corporate Plan (Strategic Goal 1: Key Result Area – Urban Parklands)
RESULT AGAINST PERFORMANCE CRITERION
The Harbour Trust’s Corporate Plan 2015-19 has set the following objectives to be achieved for this strategic goal: ● Review its Plans across all sites to ensure relevance and alignment to the Harbour Trust’s core objectives. The Plans will continue to guide the Harbour Trust’s decision making. ● Rehabilitate land, buildings, infrastructure and equipment consistent with conservation, environmental, cultural values and relevant standards, the Harbour Trust’s Comprehensive Plan and Portfolio Budget Statement Outcomes, in order to provide renewed and redeveloped assets that enhance visitor experiences, access and safety. ● Have in place an Asset Management Plan to ensure prioritised programs are in place which preserve the Harbour Trust’s values and offer the most tangible returns in maximising public access and contributing to the ongoing management of the lands.
In 2015-2016, the Harbour Trust set the following targets for this performance criterion: ● Complete a review of the Harbour Trust’s existing Plans. ● Finalise a Return on Investment (ROI) Review of the Harbour Trust’s assets. ● Implement a four-year comprehensive capital works project.
Results at 30 June 2016 ● An internal review of the Comprehensive and Management Plans was undertaken to consider the urgency for revision. Cockatoo Island, Platypus and Middle Head were identified as the first sites to be targeted for action. However, the need to ensure comprehensive Community Advisory Committee and key stakeholder consultation may necessitate a reassessment of the current timeline for all plan revisions to be completed by 30 June 2017. ● A detailed list of all revenue-generating assets was compiled and a ROI review completed for all accommodation and leasing assets. An ROI review of the Harbour Trust’s Licensing assets will be finalised in 2016-17. ● A four-year comprehensive capital works project is now underway. The planned works are reviewed and updated regularly to respond to the evolving demands of the business and the need for timeline flexibility due to the potential for latent conditions in the buildings which are scheduled for remediation. ● In meeting the requirements of the Environment Protection and Biodiversity Conservation Act (EPBC Act) and the Comprehensive Plan, particularly with respect to the protection of the environmental and heritage values of the Harbour Trust’s places, the Cockatoo Island Management Plan was reviewed and a draft amendment exhibited; the Harbour Trust’s Heritage Strategy was reviewed and amended; and proposed actions were assessed and approved with conditions. HARBOUR TRUST ANNUAL REPORT 2015-16 2019 Key Performance Indicators These results indicate that the Harbour Trust is on target to meet its 2019 Key Performance Indicators: Approved, revised Plans are guiding the Harbour Trust’s decision-making – The review of plans was finalised and stakeholder consultation commenced. Maximisation of return from utilisation of Asset Renewal Reserve – The ROI on assets will assist in prioritisation of asset renewals. 5% decrease in reported Workplace Health & Safety incidents – During the reporting period, there was a total of ten staff, contractor and volunteer incidents. This was the same as for the prior year. Asset Management Plan guides the priority of work projects, in line with the Comprehensive Plan and the Corporate Plan – A four-year capital works program has been implemented as part of the formulation of a comprehensive asset management strategy. 15 Annual Performance Statements STRATEGIC GOAL 2 PERFORMANCE CRITERION
Growth and Enterprise: Grow and diversify our revenue and funding streams to support the preservation, enhancement and operation of the Harbour Trust’s sites CRITERION SOURCE
2015-2019 Corporate Plan (Strategic Goal 2: Key Result Area – Growth and Enterprise)
RESULT AGAINST PERFORMANCE CRITERION
The Harbour Trust’s Corporate Plan 2015-19 has set the following objectives to be achieved for this strategic goal: ● Develop a long-term funding strategy which provides both operational costs and new capital funding for the organisation, from Government and other diverse sources. ● Put in place a revised Business Development Plan, primarily focusing on increasing revenue from commercial and residential leasing portfolios, and the accommodation business, as well as identifying other sources of revenue from activities catering to established and emerging needs of visitors.
In 2015-2016, the Harbour Trust set the following targets for this performance criterion: ● The future of the Sydney Harbour Conservancy (SHC) is finalised. ● A Strategic Business Development Plan is in place.
Results at 30 June 2016 ● The Harbour Trust Board confirmed that the SHC will continue due to its Deductible Gift Recipient (DGR) status. ● A comprehensive Business Development Plan has been finalised for the Harbour Trust’s Property and Business Development unit. The focus of the plan is on maximising commercial leasing opportunities and retaining existing and attracting new anchor tenants at its key sites (Cockatoo Island, Headland Park, North Head Sanctuary).
2019 Key Performance Indicators These results indicate that the Harbour Trust is on target to meet its 2019 Key Performance Indicators: 17% increase in total revenue over four years (2015-2019) – At the end of 2015-2016, there were some increases in revenue items (e.g. leasing and licensing), but a significant decrease in one-off other income items. The implementation of the Strategic Business Development Plan should drive improvements in revenue over the remaining three years. Leasing, licensing, venue hire and accommodation revenues are consistent with Portfolio Budget Statement Outcomes. Leasing vacancies <4% – For the 2015-2016 reporting period, the Harbour Trust’s leasing vacancies were less than 2%. Accommodation Occupancy Rates to increase 27% with >40% profit margin – The 2015-2016 year has seen occupancy rates remaining stable. However, there have been improvements in the profit margin, which is now at 36%. www.harbourtrust.gov.au
16 LEFT Building 8 & 15, Former ASOPA Precinct, Middle Head. Credit: Mauricio Caicedo. RIGHT Garden Apartment, Cockatoo Island (Interior). Credit: Geoff Magee. Building 18, Chowder Bay. Credit:Mauricio Caicedo. Annual Performance Statements STRATEGIC GOAL 3 PERFORMANCE CRITERION
Engagement: Extend public engagement and affinity with the Harbour Trust’s lands
CRITERION SOURCE
2015-2019 Corporate Plan (Strategic Goal 3: Key Result Area – Engagement)
RESULT AGAINST PERFORMANCE CRITERION
The Harbour Trust’s Corporate Plan 2015-19 has set the following objectives to be achieved for this strategic goal: ● Develop partnerships and alliances with other organisations, offering cultural, educational, heritage or visitation benefits for the Harbour Trust. ● Implement a four-year Marketing and Public Events Program, which incorporates a range of high profile events to establish the Harbour Trust as a tourist destination and to increase revenue. ● Put in place a Public Engagement Plan, focusing on communications profiling and community engagements, to showcase the organisation, its sites and the ‘urban park’ model. This will encourage involvement in Harbour Trust activities, advisory committees and volunteer programmes. ● Implement site-specific strategies which will maximise public access to the Harbour Trust lands and improve the amenity of Sydney Harbour. ● Provide compelling visitor experiences, with a focus on preservation and interpretation of the heritage and cultural values of the Harbour Trust’s sites.
In 2015-2016, the Harbour Trust set the following targets for this performance criterion: ● The organisation’s Public Programs strategy focuses on Partnerships & Alliances. ● A four-year program of public events and experiences for Cockatoo Island and North Head Sanctuary is in place. ● An increase in Community Liaison and Volunteer program activities. ● An increase in volunteer hours. ● The implementation of a planned comprehensive approach to collating visitor data. ● The completion of a site interpretation inventory and gap analysis. www.harbourtrust.gov.au
18 Justin Bieber performing at Cockatoo Island, September 2015. Credit: Zakarij Kaczmarek. Results at 30 June 2016 ● The Harbour Trust’s Public Programs strategy has focused on Partnerships & Alliances across its sites, including: - cultural partnerships with the Underbelly Arts Festival and the Biennale of Sydney contemporary art exhibition on Cockatoo Island; - a heritage partnership with the Royal Australian Artillery Historical Company at North Head Sanctuary (Defence of Sydney historic artillery display and the Sir Roden Cutler VC Artillery Research Centre); and - a site-specific interpretation partnership with the Sydney Institute of Marine Science (SIMS) at Headland Park, Mosman (SIMS Discovery Centre and Harbour Trust heritage interpretation room charting the history of Chowder Bay). ● A calendar of events and experiences has been produced for key sites up until the end of the 2016-2017 financial year. A new Events Policy has been implemented to assist in targeting and assessing the suitability of future Venue Hire clients and partners. ● Community liaison activities (surveys, open days and public board meetings) have increased across the Harbour Trust’s key sites of Cockatoo Island, North Head Sanctuary and Headland Park. Documentation to support new Community Advisory Committee processes and memberships were implemented. The appointment of a Public Engagement and Relationships Coordinator has helped to facilitate the Harbour Trust’s increased community liaison activities. ● Volunteer activities, including new initiatives such as documenting historical artefacts, coordinating the Trust Talks program and assisting with on-site maintenance work and the Sydney Gold honey project, and volunteer hours (up by 2%) both increased during the year reported. ● An updated visitor data collection objective was determined and a review of customer feedback channels was completed. New feedback channels (iPad, paper surveys) were implemented at Cockatoo Island, North Head Sanctuary and Headland Park. A full calendar year of comprehensive visitor research is underway on Cockatoo Island. ● A draft four-year plan of interpretation priorities for Cockatoo Island convict history was completed. A gap analysis was determined for North Head Sanctuary.
2019 Key Performance Indicators These results indicate that the Harbour Trust is on target to meet its 2019 Key Performance Indicators: Minimum of five cultural or heritage partnerships per annum – The 2015-2016 reporting period saw the Underbelly Arts Festival and the Biennale of Sydney on Cockatoo Island. Minimum of six large events per annum – The new Events Policy focuses on large events rather than small-to-medium-size events. Visitation has increased by 2-5% – The 2015-2016 reporting period saw a 21% increase in visitation on Cockatoo Island. Volunteer hours have increased by 5% – In the 2015-2016 financial year, volunteer hours increased by 2%. 80% positive response on visitor surveys – 2015-2016 saw the introduction of a full 12-month visitor survey initiated on Cockatoo Island to provide in depth visitor data for analysis. Site interpretations are completed for the majority of Harbour Trust sites – Work continued on Cockatoo Island and North Head Sanctuary interpretation priorities. HARBOUR TRUST ANNUAL REPORT 2015-16
LEFT Emma McNally, Choral Fields, 20th Biennale of Sydney, Cockatoo Island. Credit: Geoff Magee. RIGHT Lee Bul, Willing to be vulnerable, 20th Biennale of Sydney, Cockatoo Island. Credit: Geoff Magee. 19 Annual Performance Statements STRATEGIC GOAL 4 PERFORMANCE CRITERION
Innovation: Achieve operational and business efficiencies
CRITERION SOURCE
2015-2019 Corporate Plan (Strategic Goal 4: Key Result Area – Innovation)
RESULT AGAINST PERFORMANCE CRITERION
The Harbour Trust’s Corporate Plan 2015-19 has set the following objectives to be achieved for this strategic goal by 30 June 2020: ● Implement up-to-date, efficient, integrated and appropriate resources to deliver the business objectives. ● Further develop workforce planning and strategic resourcing to ensure the Harbour Trust has the right number of people with the right skills, delivering the short and long term organisational objectives.
In 2015-2016, the Harbour Trust set the following targets for this performance criterion: ● A new financial management system is in place. ● A strategic people plan has been developed.
Results at 30 June 2016 ● The new Microsoft Dynamics Financial Management Information system was deployed and is being utilised efficiently. ● A succession plan was completed and planning commenced for a skills audit. However, a strategic people plan has not yet been finalised. During the year reported, the position of Human Resources Manager was vacant for a period of time which affected the organisation’s capacity to complete this plan. As a result, this target has been carried forward to the 2016-2017 financial year.
2019 Key Performance Indicators These results indicate that the Harbour Trust is on target to meet its 2019 Key Performance Indicators: Integrated Enterprise Resource Planning system is in place – The Finance module has been implemented and the CRM module is planned to be rolled out in the 2016-2017 financial year. Regretted Staff Turnover is <5% – This was achieved in the 2015-2016 reporting period, ahead of the 2019 time frame.
LEFT Platypus Open Day, May 2016. Credit: Geoff Magee. RIGHT Middle Head Planning Information Day, May 2016. Credit: Ian Evans. www.harbourtrust.gov.au
20 STRATEGIC GOAL 5 PERFORMANCE CRITERION
Asset Management: Operate, maintain and upgrade the Harbour Trust’s facilities and infrastructure in an efficient and sustainable manner CRITERION SOURCE
2015-2019 Corporate Plan (Strategic Goal 5: Key Result Area – Asset Management)
RESULT AGAINST PERFORMANCE CRITERION
The Harbour Trust’s Corporate Plan 2015-19 has set the following objectives to be achieved for this strategic goal: ● Ensure the Harbour Trust’s Comprehensive Asset Management Strategy is in place, delivering sustainable asset management. The strategy will improve whole life costs of assets, service delivery, operating cost reductions and capital projects. The Harbour Trust will adopt ecologically sustainable development principles as part of its Asset Management Strategy.
In 2015-2016, the Harbour Trust set the following target for this performance criterion: ● Capital and renewal work projects prioritised in line with the Comprehensive Asset Management Strategy and Corporate Plan.
Results at 30 June 2016 ● A twelve-month capital and renewal work project plan was finalised and the projects prioritised accordingly. 100% of these projects were completed on budget. However, 83% of these projects were delayed due to issues with contractors or resource availability. The age and heritage nature of many Harbour Trust assets means that contingency allowances have to be made for additional latent works and unforeseen delays once these projects are underway.
2019 Key Performance Indicators These results indicate that the Harbour Trust is on target to meet its 2019 Key Performance Indicator: Capital Projects completed as per programme >75% and on/or under approved budget >75% – This KPI has been achieved ahead of the 2019 time frame. HARBOUR TRUST ANNUAL REPORT 2015-16
Platypus Open Day, May 2016. Credit: Geoff Magee. 21 Regulator Performance Framework
The Sydney Harbour Federation Trust has the following regulated activities covered by the Regulator Performance Framework:
● Regulation of Child Care Centres operating on Harbour Trust land ● Issue of Liquor Permits for the service of alcohol on Harbour Trust land ● Issue of Development Applications (DA) for activities on Harbour Trust land
Reporting against KPIs:
KPI 1 Regulators do not unnecessarily KPI 2 Communication with regulated impede the efficient operation of entities is clear, targeted and effective regulated entities Harbour Trust Metrics Harbour Trust Metrics ● Demonstrated effective mechanisms for responding to stakeholder engagement/complaint. ● Regular, ongoing review of policies, procedures and requirements, including consultation and ● Estimated timeframes for complaints handling engagement with stakeholders. are published, including maximum time for acknowledgement and average time for decisions. ● Documented established communication mechanisms with regulated entities, including ● Decisions are accompanied by a statement of feedback from existing complaint mechanisms. reasons and advice about relevant review or appeal mechanisms, where appropriate. Results at 30 June 2016 Results at 30 June 2016 ● Stakeholder meetings held during the 2015-16 reporting period: ● The Harbour Trust’s complaint handling data logs - 7 Community Advisory Committee meetings; are maintained, which incorporate the number of - 5 Cockatoo Island stakeholder meetings; complaints received and the response time frames. - 9 North Head stakeholder and partner meetings. ● The Complaints Policy and Procedures details the time frames for handling complaints. ● The Harbour Trust’s Complaints Policies and Procedures were published on the ● The organisation’s Development Applications and organisation’s website. Child Care Service Approvals provide reasons and advice about review or appeal mechanisms, where appropriate. www.harbourtrust.gov.au
Aerial view of the Platypus site at Neutral Bay with 22 Sydney CBD in background. Credit: Mark Merton.
Regulator Perfomance Framework
KPI 3 Actions undertaken by regulators KPI 4 Compliance and Monitoring are proportionate to the regulatory risk Approaches are streamlined and being managed co-ordinated
Harbour Trust Metrics Harbour Trust Metrics
● Demonstrated engagement with regulated entities ● Demonstrated effort to reduce the number and to inform them of the regulators’ expectations. crossover of information requirements imposed on
● Risk management plans are provided by regulated entities. regulated entities. ● Demonstrated effort to share and receive information among regulators, where appropriate.
Results at 30 June 2016 ● Regular review and assessment of agreed monitoring ● DA Guidance Notes were provided to all DA and compliance strategies, including the use of applicants. 16 new DAs and three modifications to earned autonomy approaches. existing DAs were received during the year reported.
● Liquor Permit applicants receive all information Results at 30 June 2016 about meeting and maintaining relevant ● The Harbour Trust replicates NSW Liquor Licensing requirements. 19 liquor permits were issued during Laws and the National Child Care Regulations which the year. Eight were for events and 11 were tenant assists in reducing the number and crossover of renewals. information requirements.
● Child Care Service Approvals provide all information ● The Harbour Trust maintains ongoing relationships about meeting and maintaining relevant with the NSW Government, neighbouring local councils requirements. No new applications were received and the NSW National Parks & Wildlife Service.
during the year reported. ● A range of tailored responses in relation to regular ● Where requested, all tailored risk management plans review and assessments has been implemented. have been received. An earned autonomy approach is evident, in particular with liquor permits. www.harbourtrust.gov.au
24 Alexis Taplin, Arch (The Politics of Fragmentation), 20th Biennale of Sydney, Cockatoo Island. Credit: Geoff Magee. KPI 5 Regulators are open and transparent KPI 6 Regulators actively contribute in their dealings with regulated entities to the continuous improvement of regulatory frameworks Harbour Trust Metrics
● Responses to requests from regulated entities are Harbour Trust Metrics provided within specified timeframes. ● Documented procedures are in place to allow ● Performance information is made publicly available, active and regular engagement with stakeholders. where appropriate. ● Stakeholder events are held regularly. ● Advice and guidance is widely available to stakeholders, with feedback mechanisms in place to Results at 30 June 2016 support and inform continuous improvement. ● The Harbour Trust carries out surveys as appropriate. During the year reported, a tenant Results at 30 June 2016 survey was conducted.
● The Harbour Trust has a documented and published ● Records of stakeholder meetings are maintained. Complaints Policy and Procedures with specified ● Board meetings were held in public three times timeframes. During 2015-16, 35 complaints were during 2015-16. received. 91% were responded to within the ● Summary of the Notes from the Community required time frame and all complaints were Advisory Committee meetings held during the resolved within the required time frame. reporting period were published on the Harbour ● The number of DA applications requiring Trust’s website. environmental assessments is provided in the Annual Report.
● The Harbour Trust publishes DA Guidance Fact Sheets and Liquor Licensing information. Feedback mechanisms are in place via our Complaints Handling Procedures. There are planned, regular inspections for child care services. Two inspections were carried out during the 2015-16 financial year. HARBOUR TRUST ANNUAL REPORT 2015-16
Harbour Trust architect Libby Bennett being interviewed by ABC TV News, 3rd Quarantine Cemetery, North Head Sanctuary. Credit: Zakarij Kaczmarek. 25 Analysis of performance against Purpose
Introduction of electrical and potable water services, repairs of paths at Headland Park, and the completion of the The Harbour Trust operates in an environment that underground remediation works at Platypus. A total is influenced by government funding availability of 18 capital works projects were completed within and internal budget constraints. It faces significant the reporting period. 100% of these projects were competition for its commercial and residential leasing completed within the allocated budget, and 83% portfolio from both commercial and residential stock according to the original timetable. Environmental in the areas near its sites and in central Sydney. assessments of, and approvals were granted to, Visitation to its sites and accommodation facilities a range of works and activities undertaken by the on Cockatoo Island face competition from other Harbour Trust and its tenants. high-profile Sydney attractions and from other regions. A list of the Harbour Trust’s maintenance, heritage Low business confidence and conditions in the small- conservation and environmental management to-medium-sized enterprise sector have also had an projects in 2015‒16 is included in Appendix 3. impact on the Harbour Trust’s commercial leasing opportunities and occupancies. These activities help to preserve, enhance and promote the rich historical, cultural and natural values embodied The harsh coastal environment at most of the in the Harbour Trust’s land and further the function of Harbour Trust’s sites increases demand for cyclical, the Harbour Trust to promote appreciation of the land, planned and reactive maintenance programs for the in particular its environmental and heritage values. Harbour Trust’s significant fixed asset base. This, in turn, puts considerable pressure on the organisation’s operating budget. Engagement overview In 2015-16, the Harbour Trust continued its dedicated The Harbour Trust currently faces challenges with approach to improving, activating and promoting its regard to recognition of the Harbour Trust brand sites for the benefit and enjoyment of the general in the greater Sydney region and some ongoing public. Visitor experience remained a major focus brand-confusion with other similarly-named across the reporting period in order to enrich visitors’ organisations. However, the recent focus on the understanding of the site-specific history and to social and environmental stewardship of comparable improve visitor amenities. organisations provides the Harbour Trust with an opportunity to emphasise and promote its credentials Marketing communications activities were focused and achievements. on digital channels and media coverage that raised the Harbour Trust’s profile and supported the main As a self-funding government agency, the long-term revenue-generating segments of the business: Property financial sustainability of the Harbour Trust is based Leasing, Accommodation and Venue Hire. Community on its capacity to generate sustainable revenue. The and cultural partnerships continued to be nurtured so organisation will continue to focus on increasing as to activate sites, increase site visitation and deliver visitation to its sites and raising its public profile to an engaging visitor experience. Visitation to Cockatoo ensure a positive impact on its commercial leasing, Island increased by 21% from the previous reporting venue hire and accommodation activity. period, demonstrating the island’s continuing appeal as a destination in Sydney for locals and tourists alike. Urban Parklands and Community consultation was a key focus of the Asset Management overview Harbour Trust’s public engagement activities during During the year reported, the Harbour Trust the reporting period and community liaison activities continued its ongoing conservation, rehabilitation increased at Cockatoo Island, North Head Sanctuary, and maintenance program on its sites. Enhancing safe Headland Park and the Platypus site. public access was an ongoing focus of the program. These activities contribute to extending public The asset management activities included building engagement and affinity with the Harbour Trust’s and grounds maintenance, bushfire hazard reduction, lands, as well as furthering its objective to maximise www.harbourtrust.gov.au bush regeneration, building restoration, updating public access and promote appreciation of the land. 26 Growth and Enterprise overview The long-term financial sustainability of the Harbour Trust is based on its capacity to generate revenue, which includes the leasing and licensing of its buildings and lands. The underlying objective is to consolidate a robust and diversified revenue base across the total portfolio.
Within the Business Development division, three of the Building 6 (Gate House), North Head Sanctuary. four business units (Commercial Leasing, Residential Credit: Mauricio Caicedo. Leasing, Licensing & Venue Hire and Accommodation) reported increased year-on-year earnings in 2015-16. Third Quarantine Cemetery at North Head Sanctuary. The organisation continued to identify and prioritise Strong revenue increases from the Harbour Trust’s key the restoration and adaptive reuse of under-utilised activities has offset a fall in interest income as a result buildings to add additional stock to its leasing of lower cash reserves and falling interest rates. portfolio. In most cases, these buildings require Improvements in the Harbour Trust’s income significant capital investment. However, undertaking streams have allowed the organisation to continue larger-scale restoration works, such as potential to allocate funding to its extensive condition-based key assets at North Head Sanctuary, would require maintenance program and its cultural and interpretive additional funding beyond the Harbour Trust’s current events program to improve site visitation and visitor capability. Wherever possible, the Harbour Trust experience. The lower supplier expenses in 2015- actively works with potential commercial partners to 16 were due to a number of key condition based be able to assist in providing external capital. maintenance works being brought forward into the Encouraging visitation and increasing public awareness prior 2014-15 financial year. of Harbour Trust sites is a key component of the The strong result has also enabled the Harbour Trust Business Development strategy. Licensing & Venue Hire to continue to allocate funds from its cash reserves activity brought over 29,000 people to Harbour Trust to its capital renewal reserve. This reserve is critical sites in 2015-16. in that it allows the organisation to undertake These Harbour Trust activities focus on funding and capital improvement works as required to its existing business development initiatives to support the building stock. The Harbour Trust also received preservation, enhancement and operation of the an additional $20 million equity injection from the Harbour Trust’s sites and furthering the objectives Commonwealth Government during 2015-16 for stage of the Harbour Trust. one refurbishments on the former HMAS Platypus site. During the reporting period, the Harbour Trust Financial Summary has continued to upgrade its sites’ infrastructure and services assets, which were in poor condition when The Harbour Trust’s posted an operating surplus of the organisation took ownership. The organisation has $459,000 in 2015-16. The organisation’s own source HARBOUR TRUST ANNUAL REPORT 2015-16 also continued to improve the public amenities within revenue for the financial year was $17.391 million, with its urban parklands with upgrades to walking tracks, the majority of income generated from our leasing parkland landscaping and interpretive signage. and licensing activities. Commercial and residential income continued to show improvements during In summary, the Harbour Trust continues to develop the year and the Harbour Trust also saw improved key income streams and manage its operational revenue performance from its accommodation, tour expenses to maintain its strong financial position. and hire business activities. Additionally, the Harbour During 2015-16, there were no non-compliance issues Trust received grant funding during the year. The that required notification to the Minister, in relation two major grants were for the conservation of the to Finance Law, including the Public Governance World Heritage-listed convict workshops on Cockatoo Performance and Accountability Act (2013) (PGPA Act) Island and the restoration and interpretation of the and the PGPA Rule 2014. 27 Urban Parklands & Asset Management Major Capital Works and Maintenance Projects
Headland Park, Mosman Headland Park in Mosman comprises Chowder Bay, The capital works improvements completed by the Georges Heights and Middle Head. It features former Harbour Trust on Cockatoo Island during the 2015-16 training facilities, fortifications, depots, barracks and financial year included: housing surrounded by remnant bushland. Most of ● Extensive remedial works to the former the buildings are now leased for a range of uses that Powerhouse chimney enliven the park including education, dining, offices, ● The installation of a new main for potable a function centre, childcare, residential water between Cockatoo Island and Balmain accommodation, creative arts, health and fitness, and retail. ● Structural repairs to heritage cranes around the Fitzroy Dock Major works and activities undertaken at Headland Park during the reporting period included: ● Repairing areas of the pavement on the Southern Apron ● The refurbishment of the walking track between Georges Head Lookout and Middle Head Road ● Landscaping along Burma Road
● The construction of a commemorative lookout ● The installation of drinking fountains at Georges Heights ● Geotechnical investigations and repairs to the ● Upgrades to existing heating, ventilation and air cliff faces and tunnels conditioning systems in some tenanted buildings ● A hazard reduction burn upslope of Chowder Bay North Head Sanctuary, Manly Road, in conjunction with NSW National Parks North Head Sanctuary is one of Sydney’s great and Wildlife Service landmarks, home to a delicate ecosystem. The ● Repairs and painting to the historic timber wharf former School of Artillery occupies the highest part at Chowder Bay of North Head and comprises the Barracks complex ● Ongoing painting and repairs to tenanted and the North Fort complex. The Barracks complex buildings at Headland Park contains a collection of art deco buildings with a parade ground, service areas, sheds and a large area of remnant bushland. Cockatoo Island The Harbour Trust’s land at North Head Sanctuary Cockatoo Island is the largest island in Sydney includes 28 houses that were originally used to Harbour and has been modified and used as a penal accommodate officers of the former School of Artillery. settlement and maritime industrial site. Originally The majority of the houses are leased to medium-term only 12.9 hectares, the island has been greatly residential tenants and one has been converted to a altered from its natural state. It has World, National café (Bella Vista Café at the entrance to North Fort). HARBOUR TRUST ANNUAL REPORT 2015-16 and Commonwealth heritage listings and contains
Many of the other buildings at North Head Sanctuary HARBOUR TRUST ANNUAL REPORT 2015-16 remnants of an imperial convict prison, two dry docks, are leased for a variety of purposes including education wharves, slipways, maritime buildings, residences, for adults and children, health, fitness and well-being, a powerhouse, cranes, water towers and tunnels. childcare, artists, a function centre and a plant nursery. Approved uses on Cockatoo Island include holiday In the year reported, the Harbour Trust conserved accommodation and a campground, cafe, marine and adapted many of the buildings at North Head research, offices, marine centre and retail. The Sanctuary. While these buildings are structurally Harbour Trust is working closely with the public ferry sound, they are vulnerable to deterioration due to operator to continually improve the level of service to their exposure to the marine environment. the Island.
29 Bungaree Walkway, Chowder Bay. Credit: Zakarij Kaczmarek. 29 Urban Parklands & Asset Management
Major works and activities at North Head Sanctuary Macquarie Lightstation during the reporting period included: Macquarie Lightstation is Australia’s first and longest- ● The commencement of repairs to the historic operating navigational light. Built in 1818, the original stone wall and underground tunnels at North Fort lighthouse was designed by convict Francis Greenway as part of a Green Army project and constructed of sandstone quarried on site.
● The reconstruction of a Miniature Range, Following construction of a new lighthouse (designed including the removal of hazardous materials by James Barnet) in 1883, the original Greenway lighthouse was demolished. No major works were ● Remedial works to the World War II underground carried out during the year reported. Plotting Room
● An archaeological research project at the Third Quarantine Cemetery Former Marine Biological Station
● Essential repairs and works to Building 205 The former Marine Biological Station comprises a (former National Artillery Museum) residence and grounds on the foreshore of Camp Cove, Watsons Bay. Most of the grounds have been ● Monitoring of Long-nosed Bandicoots and other transformed into a public foreshore park providing species by the Australian Wildlife Conservancy access to Camp Cove beach. Major works carried out during the year reported included the removal of Woolwich Dock and Parklands weeds and replenishment of landscaped areas at the Woolwich Dock and Parklands, located on the Hunter’s Marine Biological Station Park and the replacement of Hill peninsula, have a rich maritime history. In 1898, the boundary fence between the Park and the adjoining Morts Dock and Engineering Company constructed a residential property. new sandstone dry dock (1898-1901) that was used for repairing ships during both World Wars. Today, Snapper Island the site’s dry dock links to parklands, walkways, Snapper Island is yet to be formally transferred by workshops and a function centre. the Department of Finance to the Harbour Trust. In Major works completed at Woolwich Dock and the 2015‒16 financial year, the Department of Finance Parklands during the reporting period included completed a Heritage Validation Assessment, and regeneration and planting of the Upper Horse Paddock undertook some remediation to the existing buildings and Goat Paddock. on the island.
Platypus, Neutral Bay Bushland and Bushfire Risk Management The former HMAS Platypus naval base is a waterfront Ecological restoration works continued during the industrial site in one of Sydney’s quiet bays, a reminder year at Headland Park, North Head Sanctuary and of the harbour’s maritime heritage. Sitting amid pockets of remnant bushland and reinstated areas Neutral Bay’s waterfront residential properties and at Woolwich Dock and Cockatoo Island. The works foreshore parks, the former gasworks facility and included extensive control of weeds over an area of Royal Australian Navy (RAN) base contains a range of 45 ha, maintenance of over 10 km of bush tracks buildings adapted from the gasworks operations and and access trails, manual and mechanical built for the war effort, which were utilised by Defence bushfire hazard reduction around built assets, and from 1942. In 1967, the existing concrete wharf was reinstatement of previously cleared areas using local built for the RAN’s Oberon Class submarine fleet. The provenance seedlings. Navy closed HMAS Platypus in 1998. During the reporting year, fuel reduction and the The Harbour Trust took over management of the site clearing of fire breaks and trails adjacent to buildings in 2005 and began planning for remediation. The and structures at North Head Sanctuary and six-year program of remediation of the site, and the Headland Park were undertaken. The Harbour Trust construction and landscaping of the urban park at the also worked closely with neighbouring landholders northern end of the site, comprising planting of native through the Manly-Mosman-North Sydney District and introduced species and numerous seating areas, www.harbourtrust.gov.au Bushfire Management Committee and the North Head was completed during the reporting period. Stakeholder Group to manage bushfire risk. 30 The Harbour Trust continued to work with the NSW Lightstation Park, Woolwich Dock and Parklands, and Office of Environment & Heritage (OEH), NPWS and the Marine Biological Station Park. A large number other stakeholders to manage feral animals on its sites. of Jacarandas were also planted in public spaces at This included programs to control rabbits and foxes Headland Park. at North Head Sanctuary, Woolwich Dock and More than 23,000 plants were propagated from local Parklands, and Headland Park. provenance native species, and over 2,000 ornamental natives and exotics were planted within cultural Landscape maintenance landscapes. The Cockatoo Island gardening volunteers planted over 300 plants on the island, Headland Park The Harbour Trust continued its regular program of gardening volunteers planted over 100 plants at the ongoing landscape reinstatement and maintenance former ASOPA complex in Middle Head, and the North works throughout all of its sites in 2015‒16. The works Head Sanctuary Foundation propagated and planted generally consist of regular mowing and edging of over 4,000 native plants around the sanctuary. lawns, and pruning, weeding, mulching and infill planting of garden beds. Over 25,000 native trees, shrubs, grasses and groundcovers were planted on Harbour Trust sites during the year, including for the establishment of a new urban park at Platypus and removal of weeds and replenishment of landscaped areas at Macquarie HARBOUR TRUST ANNUAL REPORT 2015-16
Landscaping at Northern Park, Platypus, Neutral Bay. Credit: Geoff Magee. 31 Urban Parklands & Asset Management
Harbour Trust Plans and Environmental Assessments
Heritage Strategy Environmental assessments In 2015-16, the Harbour Trust’s Heritage Strategy The Harbour Trust prepares environmental was reviewed in accordance with the Environment assessments of actions proposed on Harbour Trust Protection and Biodiversity Conservation Act 1999 lands, to ensure proposals further the objects of (EPBC Act). The review recommended the Strategy the Sydney Harbour Federation Trust Act 2001, are be updated to reflect the substantial remediation consistent with Harbour Trust Plans, protect the activities, conservation works and revitalisation that sites’ environmental and heritage values, and are has been undertaken across the sites through the in accordance with the Environment Protection and implementation of the Harbour Trust’s Plans. In June Biodiversity Conservation Act 1999. 2016, the Delegate for the Minister for the Environment In the past year, the Harbour Trust completed endorsed a revised Strategy. environmental assessments for 19 proposed actions, including:
Management Plans ● Landscaping and wharf works at Platypus In early 2016, the Harbour Trust completed a statutory ● Archaeological research and conservation review of the 2010 Cockatoo Island Management Plan, works to the Third Quarantine Cemetery, which recommended the Plan be updated to reflect North Head Sanctuary
physical changes since the current Plan was made ● Construction of a commemorative lookout (such as remediation and conservation works); and and path at Headland Park satisfy the requirements of a Management Plan for a ● Hosting of the 20th Biennale of Sydney World Heritage place. contemporary art festival at Cockatoo Island Accordingly, a Draft Amendment to the management ● Hazard reduction burns at North Head Sanctuary plan was exhibited by the Harbour Trust in May-June 2016. In 2016-17, the Draft Plan will be forwarded to the Approved actions are subject to conditions to avoid Minister for the Environment and Energy for approval. potential impacts or to minimise or mitigate impacts. These conditions help the organisation to manage In 2015-16, the consultation process commenced for a activities in accordance with relevant legislation review of the Middle Head Management Plan and for and standards. a new plan for Platypus, which is discussed later in this section. The Draft Management Plans for Middle Head and Platypus are expected to be placed on public Community consultation exhibition in the 2016-17 financial year. The Harbour Trust continued to consult with communities and liaise with key stakeholders on the Background Studies planning and rehabilitation of its sites. This ranged from formal Community Advisory Committee meetings Specialist noise and transport consultants were to workshops, open days, presentations, discussions, engaged by the Harbour Trust to inform the planning public exhibition of plans and newsletters. for the Platypus site in North Sydney. These reports analysed the site and its surrounds and provided Community Advisory Committees met seven times detailed measures for managing noise and transport throughout the year, twice to specifically discuss impacts. The consultants’ findings will be used by the Platypus and five times to discuss various Harbour Harbour Trust to assist in identification of suitable land Trust projects across all the sites. uses for the site, and will inform the Draft Management Planning Open Days were held at Middle Head and Plan for Platypus. Consultants were also engaged to Platypus in the reporting period. A combined total of provide advice regarding the condition of the aquatic almost 1,000 members of the public attended the two environment to inform the detailed design of a days, which included self-guided tours, presentations potential future over-water link between Platypus and and opportunities to participate in public information www.harbourtrust.gov.au Kesterton Park. 32 sessions. The Open Day at Middle Head was held in ESD principles inform the organisation’s approach to conjunction with NSW National Parks and Wildlife biodiversity and bushland conservation, management Service. Following the Open Days, the Harbour Trust of native and introduced flora and fauna, water quality received approximately 1,150 completed survey forms and catchment protection, bushfire management, and 27 other written submissions. This feedback remediation of hazardous and contaminated material, will assist the Harbour Trust in its preparation of transport management and air quality, renewable management plans for the two sites. energy and rainwater harvesting, and Aboriginal and The Harbour Trust held and attended many formal cultural heritage protection. and informal meetings with key stakeholder groups, The Harbour Trust selects uses and tenants that government agency staff, councils, local members, respect the environmental values of the buildings community organisations and individuals to discuss and/or lands. Proposed actions are assessed in issues on the planning and rehabilitation of its sites. accordance with the EPBC Act to identify any potential A full list of the Harbour Trust’s Community Advisory environmental impacts and to put in place measures Committee members is included in Appendix 2. to avoid or minimise these. Risk assessments are incorporated into project planning to ensure any risks to the environment are identified and mitigated. Environmental performance The Harbour Trust promotes the enjoyment and Commonwealth agencies are required to report understanding of our heritage sites while encouraging annually regarding environmental matters under visitors to contribute to the cost of park management Section 516A of the Environment Protection and (e.g. site tours, merchandise and books). The Biodiversity Conservation Act 1999 (EPBC Act). An rehabilitation of Harbour Trust sites has facilitated agency must report on how they accord with and the re-use of buildings for community and revenue- contribute to ecologically sustainable development generating activities which provide funds that are (ESD), and document their environmental reinvested in maintaining its sites. performance, including the impact their activities have on the natural environment, how these are mitigated Environmental performance and how they will be further mitigated. This section of the Annual Report examines the environmental performance of the Harbour Trust’s Ecologically sustainable development direct operations, measuring the office’s energy, Ecologically Sustainable Development (ESD) is fuel and water consumption, and the generation of fundamental to the Harbour Trust’s approach to waste and greenhouse gases. It details the Harbour decision-making, planning and rehabilitation, and Trust’s environmental performance against each of the use of its sites. The Harbour Trust’s Act includes these targets compared to previous reporting periods. the object of protecting environmental values and These results relate to the environmental impact of requires the preparation of a plan that accords with the Harbour Trust’s operations at the head office the principles of ESD. ESD is a central objective of the in Mosman. Harbour Trust’s Comprehensive Plan and site-specific The Harbour Trust uses the Global Reporting Management Plans. Initiative’s (GRI’s) Sustainability Reporting Guidelines
for reporting performance. A summary of the results HARBOUR TRUST ANNUAL REPORT 2015-16 is provided in the table below:
Environmental performance
GRI Indicators Targets for 2015-16 Results 2015-16 Targets 2016-17 Energy consumption (EN3) No increase in energy Target achieved No increase in energy consumption Fuel consumption (EN3) No increase in fuel consumption 19% increase 5% reduction Greenhouse gases (EN16) No increase in greenhouse gases 2% increase 2% reduction Water consumption (EN8) No increase in water consumption 17% increase 5% reduction Waste generation (EN22) No increase in waste generation Target achieved No increase in waste generation
33 Urban Parklands & Asset Management
Energy Consumption The Harbour Trust’s energy consumption has remained very similar to the previous reporting period. Energy consumption is lower than the annual average over the past eight reporting periods. Staff members are encouraged to reduce energy consumption through the sustainable use of the office air conditioning system. Information to encourage environmentally responsible behaviour is included in the New Employee Induction Program.
Total Energy Consumption
Year Annual Average (2007-2015) 2014‒15 2015‒16 % Change Total Consumption (MJ) 632,539 564,745 565,847 0.2
Office Energy Consumption
1000000 900000 800000 700000 600000 500000 400000 300000 Consumption (Mj) 200000 100000 0 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 Financial year
Total Annual Consumption Average Annual Consumption
Energy Efficiency in Government Operations (EEGO) Policy The Energy Efficiency in Government Operations (EEGO) Policy aims to reduce the energy consumption of Australian Government operations with particular emphasis on building energy efficiency. A key objective of the EEGO Policy for Government office buildings is to achieve the energy intensity targets set out in the table below. The Harbour Trust has achieved these targets.
Electricity consumption (mega-joules per staff member per annum)
EEGO Policy Target 2014‒15 2015‒16 Central services 400 198 198 Office light and power 7,500 4,278 3,929 www.harbourtrust.gov.au
Walking track, Headland Park Walkway. 34 Credit: Zakarij Kaczmarek.
Fuel Consumption The Harbour Trust uses fuel for its small fleet of vehicles and boats. Fuel consumption increased by 19% compared to the previous year which is slightly above the average annual consumption (5,474 litres). Increased staff numbers, additional trips to the Platypus site, the introduction of an additional vehicle and more site maintenance activities requiring vehicle use have all been contributing factors to this increase in fuel consumption. The Harbour Trust will continue to encourage staff to car- and boat-pool to help reduce fuel consumption.
Total vehicle fuel consumption (cars and boats)
Fuel Consumption 2014‒15 (Litres) 2015‒16 (Litres) % Change Vehicles* Unleaded 2,008 2,427 21 LPG 69 81 17 Diesel 539 574 6 Sub Total 2,620 3,082 18 Boats** Unleaded 2,352 2,679 14 Diesel 0 174 Sub Total 2,352 2,853 21 Total Fuel 4,969 5,936 19
*The Harbour Trust’s vehicle fleet comprises two cars (unleaded); two utes (LPG/unleaded); one truck (diesel). **The Harbour Trust’s boat fleet comprises two boats (unleaded and diesel).
Fuel Consumption
800000 700000 600000 500000 400000 300000 200000 100000 Fuel Consumption (Litres) Fuel 0 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 HARBOUR TRUST ANNUAL REPORT 2015-16 Financial year
Total Annual Consumption Average Annual Consumption
Beam bending machinery, Cockatoo Island. Credit: Geoff Magee. 37 Urban Parklands & Asset Management
Greenhouse Gas Emissions There was a slight increase in total greenhouse emissions generated from energy and fuel consumption. However, this is still below the annual average net emissions. The Harbour Trust purchased Greenfleet offsets to reduce the carbon footprint of the Harbour Trust’s vehicle fleet. The photovoltaic (PV) arrays at Cockatoo Island and North Head Sanctuary generated sufficient power for the Harbour Trust to significantly reduce net emissions. This has resulted in a reduction in net greenhouse gas emissions compared to last year.
Carbon Footprint
Annual Average 2014‒15 2015‒16 % Change (2007-2015)
Co2-e (tonnes) Total Gross Emissions 208.1 185.2 187.9 1.5 Less Offsets 40 20 20 0 (Greenfleet/Greenpower) Less Renewable Energy (Pv) 147.9 133 160.2 20.4 Total offsets 196 153 180.2 20.1 Total Net Emissions -0.2 32.1 7.7 -76
Greenhouse Gas Emissions
320
220
120
-e (tonnes)
2 20
Co -80
-180 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 Financial year
Gross Emissions Less Offsets Net Emissions www.harbourtrust.gov.au
38 Water Consumption Water consumption increased by 37% compared to the previous year. During the next reporting period, the Harbour Trust will investigate water saving devices, improvements to the office’s water supply and ensuring the system is regularly maintained.
Water Consumption (Potable)
Annual Average 2014‒15 (Litres) 2015‒165 (Litres) % Change (2007-2015) Total Office Consumption 270,420 239,000 327,950 37 Daily Consumption (Average) 1,060 937 1,286 37 Daily Average per Person * 18 14 18 28.6
Annual and Daily Water Consumption
350
300
250
200
150
100 Water Consumption Water 50
0 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 Financial year
Annual Total Consumption of Organisation (KiloLitres) Average Total Consumption of Organisation (KiloLitres) Daily Consumption per Staff Member (Litres) Average Annual Daily Consumption per Staff Member (Litres)
Waste Generation HARBOUR TRUST ANNUAL REPORT 2015-16 Waste generated by the Harbour Trust is measured by the number of bins that are collected by its waste collection contractor. As the bins are shared with tenants, it does not reflect the amount of waste the Harbour Trust generates exclusively. The number of bins collected has remained consistent so it is estimated that waste generation is unchanged from previous years. Recycling kitchen waste, green waste (by use of worm farms) and soft plastics has reduced the amount of waste going to landfill. On average, the Harbour Trust used eight reams of photocopying paper per person. This is within the target of a maximum of nine reams per person set by the ICT Sustainability Plan 2010–2015.
39 Engagement Introduction The Harbour Trust demonstrated its commitment being given to Property Leasing, Accommodation and to extending public engagement and affinity with Venue Hire campaigns. Digital marketing and channels Harbour Trust lands in the 2015-16 financial year. continued to perform strongly and were coupled with The activities undertaken by the organisation included traditional marketing channels (print advertising, marketing and communications, visitor experience brochure distribution) in order to produce timely improvements, partnership events, community seasonal campaigns. consultation, interpretation and public programs in Alongside the organisation’s ongoing marketing the form of tours and education programs. and communications activities, there was also a Partnerships remained a priority during this period, range of notable partnerships, events and programs enabling the Harbour Trust to provide enriching cultural implemented across the Harbour Trust sites to increase and heritage experiences for visitors to its sites. Two visitation and public awareness. These projects are long-standing event partners returned to Cockatoo listed below in site order. Island: the 20th Biennale of Sydney and the 2015 Underbelly Arts Lab and Festival. Both contemporary Headland Park arts events resulted in high visitation and provided (Middle Head, Georges Heights, Chowder Bay) world-class exhibitions for visitors to enjoy. ● Sydney Institute of Marine Science (SIMS) The Harbour Trust fostered community partnerships Discovery Interpretation Centre, Chowder Bay. in order to improve site interpretation and amenities. In partnership with SIMS. Key projects included the completion of the new ● Sydney Institute of Marine Science (SIMS) Discovery Vantage Points art exhibition by Nick Hollo, Centre at Chowder Bay, which interprets the marine Georges Heights. life of Sydney Harbour and includes a display about the ● The Fantasea Harbour Hike, Chowder Bay. defence history of the Headland Park site in Mosman. In partnership with SIMS. Vantage Points, an exhibition of artworks by Nick Hollo, ● Sculpture by the Sea. Third and final installation resulted in over $12,000 being donated to the Sydney of the Macquarie Group Sculpture Prize-winning Harbour Federation Trust's Museum Gift Fund, which sculpture from Sculpture by the Sea at Georges will help the Harbour Trust to improve the natural Heights. In partnership with Sculpture by the Sea amenity of its foreshore parks. The Harbour Trust also and the Macquarie Group. welcomed the third and final Sculpture by the Sea ● Sydney Gold honey. The honey was produced from sculpture to its Georges Heights site at Headland Park. beehives at Georges Heights and sold through Engaging with the community was a key focus for the Harbour Trust visitor centres and selected tenants Harbour Trust during the 2015-16 financial year. Seven at Headland Park and North Head Sanctuary. Community Advisory Committee (CAC) meetings were ● The Story of Bungaree. 300 copies of this book held during the reporting period and 10 new members were donated to local Mosman schools. were appointed to the CAC at the beginning of 2016. The organisation welcomed over 1,000 attendees to ● Headland Park Tenant Handbook. two site Open Days at Platypus and Middle Head and ● Middle Head Planning Information Open Day
over 2,000 surveys were collected from the public (22 May 2016). HARBOUR TRUST ANNUAL REPORT 2015-16 which will assist the Harbour Trust in planning its future improvements and public engagement activities Cockatoo Island across its sites. ● 20th Biennale of Sydney (18 March-5 June 2016), Engagement Projects returning to Cockatoo Island for the fifth time. The marketing and communications approach in 2015- ● 2015 Underbelly Arts Lab and Festival (22-26 July; 16 continued to drive positive results for the revenue 1-2 August), returning to Cockatoo Island for the generating units of the Harbour Trust, with priority third time.
Visitors to Underbelly Arts 2015, Cockatoo Island. Credit: Geoff Magee. 41 Engagement
● Accommodation Open House Day During 2015-16, the Harbour Trust did not use polling (February 2016). organisations or undertake direct mail campaigns. The
● New entry signage and Aboriginal and Torres organisation made no payments to advertising agencies Strait Islander flags. or media advertising agencies that were over the reportable threshold for these services. ● The regular Vacation Care program during school holiday periods. The Harbour Trust made one payment over the reportable threshold to a market research organisation ● Summer drop-in tours. during the period reported. ● Curriculum-based education tours.
Organisation Purpose Expenditure ($ excluding GST) Woolwich AMR Interactive Visitor research $17,525 ● HarbourSculpture exhibition at Woolwich Pty Ltd surveys on Cockatoo Island Dock and Parklands (30 July-9 August 2015). In partnership with HarbourSculpture. Total $17,525
Platypus Communications ● Platypus Planning Open Day (14 May 2016).
● Federal Government media event and Media announcement of $20 million funding for the The Harbour Trust continued to secure excellent media Harbour Trust to commence work to open up coverage of its sites and activities during 2015-16. the Platypus site to the public (November 2015). At North Head Sanctuary, the new Saturday summer North Fort tours were covered by Channel Seven News, North Head Sanctuary, Manly ABC 1 TV News, ABC Radio 702 Sydney, ABC online,
● Opening and interpretation of the Daily Telegraph, Sydney Morning Herald and Broadsheet Sir Roden Cutler VC Artillery Research Centre. Sydney. The Harbour Trust’s archaeological research In partnership with the Royal Australian survey at the Third Quarantine Cemetery in March 2016 Artillery Historical Company (RAAHC). was featured on ABC 1 TV News, ABC 24 TV News, 702 ABC Sydney, ABC online and in the Sydney Morning ● Participated in the Q Station Open Day Herald (print and online). at North Head Sanctuary. Channel Seven’s Sydney Weekender broadcast a segment about our Georges Heights site and the Federal All sites Government’s announcement of $20 million for public- ● National Trust Heritage Festival 2016. The access funding at Platypus, Neutral Bay was covered by Harbour Trust’s tours at Cockatoo Island, North Channel Nine News, ABC 1 TV News, ABC 24 TV News, Head Sanctuary, Georges Heights and Macquarie 702 ABC Sydney, 2GB Sydney and relevant local press. Lightstation were included in the festival. Local suburban newspapers continued to frequently cover the Harbour Trust’s activities and events. Advertising and market research Cockatoo Island continued to receive positive Under Section 311A of the Commonwealth Electoral media coverage. The Harbour Trust’s Open House Act 1918, the Harbour Trust is required to report on accommodation promotion in February 2016 was payments made for the services of: featured on Channel Nine News Sydney and in the Sydney Morning Herald, Daily Telegraph, Time Out ● advertising agencies Sydney and relevant local press. The restoration of the ● market research organisations Powerhouse chimney at Cockatoo Island was the subject ● polling organisations of an exclusive feature article in the Sydney Morning ● direct mail organisations Herald. In April 2016, Channel Seven’s Sunrise did six ● media advertising agencies live weather crosses from Cockatoo Island and Channel www.harbourtrust.gov.au Primary school tour group, Turbine Shop, Cockatoo Island. 42 Credit: Geoff Magee.
Engagement Seven’s Sydney Weekender broadcast a segment about Guided tours led by volunteers ran at North Head the island. The Justin Bieber concert on Cockatoo Sanctuary (North Fort) and Headland Park while Island (aka #BieberIsland), the 20th Biennale of regular tour days were held at Macquarie Lightstation. Sydney and the 2015 Underbelly Arts Lab and Festival Volunteer speakers presented talks about the Harbour all generated significant media coverage. Trust and its sites at 30 venues to a combined During the reporting period, Cockatoo Island continued audience of 1,640 people. to be profiled as a tourist destination. The Harbour The Cockatoo Island and North Head Sanctuary Trust generated a significant amount of travel and heritage restoration volunteers continued their tourism-related media coverage across all channels. ongoing restoration work at both sites and the Media visits to Cockatoo Island were also regularly gardening volunteer teams maintained the gardens organised through the Harbour Trust’s Visiting at Cockatoo Island and Headland Park. Oral history Journalist Program and in conjunction with Destination volunteer interviewers gathered stories from those NSW and Tourism Australia. who lived and worked at Harbour Trust sites and the artefacts project volunteers created a documented list Community Engagement of historic found objects. During the reporting period, the Harbour Trust Board approved a restructure of the Community New volunteer roles Advisory Committee (CAC). This initiative provided for During 2015-16, two new volunteer roles commenced. representation across all Harbour Trust sites through A maintenance volunteer assists the Maintenance assigned delegates as well as allowing for general team with smaller maintenance tasks. The Trust Talks memberships of the CAC with relevant experience in Coordinator manages the new Trust Talks program fields such as heritage, environment or tourism. which is a series of presentations by various speakers, For the first time, the CAC included an Indigenous open to Harbour Trust staff, volunteers and the public Representative position on the committee to ensure a and designed to encourage people to visit the Harbour consistent connection with the Aboriginal community Trust’s sites. in committee discussions. The delegates were also designated to correlate with Harbour Trust sites Rangers and ex-officio members included the Mayors of local With their high public visibility, the organisation’s nine councils and Federal Members for electorates in which rangers are Harbour Trust ambassadors, providing Harbour Trust sites are located. information and assistance to visitors at its sites. Volunteers They are also responsible for the safety and security of all Harbour Trust buildings, parklands, tracks The organisation’s volunteers contributed over 28,500 and roadways. They implement the Sydney Harbour hours to the Harbour Trust during 2015-16 and 45 new Federation Trust Act (2001) and regulations to ensure volunteers were also welcomed to the program. In all visitors to our sites comply with legislation and addition, corporate volunteers contributed 80 hours parking provisions. to the preparations for the 20th Biennale of Sydney at Rangers assist with events and site presentations, Cockatoo Island. provide first aid, attend to emergencies when called,
Volunteers continued to staff the visitor centres and assist people with disabilities or the elderly HARBOUR TRUST ANNUAL REPORT 2015-16 at Cockatoo Island and North Head Sanctuary and around the sites. assist on events such as the Middle Head Planning Information Open Day, Platypus Planning Open Day and New Year’s Eve at Cockatoo Island. Volunteers represented the Volunteer team on the Harbour Trust’s Work Health and Safety committee, undertook research for the Marketing & Visitor Experience team and helped Harbour Trust staff with administration tasks.
Platypus Planning Open Day, May 2016. Credit: Geoff Magee. 45 Growth & Enterprise Commercial Leasing The Harbour Trust’s commercial leasing portfolio Cockatoo Island provides the largest business-unit contribution to Cockatoo Island is home to a number of commercial the organisation’s revenue. Its portfolio remains businesses including marine, architectural, retail and competitive when compared to the nearby suburbs food and beverage providers. During the year reported, of North Sydney, Crows Nest, Chatswood and Manly the proposal for a marina and dry stack operation in and offers a unique business environment. Vacancy the Sutherland Dock precinct on Cockatoo Island was rates have remained well below market benchmarks, approved and the work on this stage of the marina which contributed to an increase in commercial rental is now well advanced. The Business Development income of 3.1% on the previous year. Strategy will continue to focus on attracting additional The Harbour Trust continues to approach the market tenants to Cockatoo Island whilst also aiming to through Expressions of Interest and requests for improve visitation. leasing proposals. These processes are highly competitive and have secured a diverse range of North Head Sanctuary, Manly new tenants including childcare providers, a coffee marketing company and health and allied services Existing tenants such as Headland Montessori Day businesses. Care and Farmhouse Montessori School continued to experience growth in their business activities and the Harbour Trust is working with them to accommodate Headland Park their long-term needs. During the year reported, Headland Park is the dynamic hub of the Harbour buildings and other locations on the site were leased or Trust’s leasing portfolio. A significant number of licensed for short-term TV and film productions. tenants have been with the organisation for over five years and many have long-term leases. The Harbour Residential Leasing Trust works closely with tenants and, where possible, Residential leasing revenue increased by 11.4% it arranges for new accommodation solutions within on the previous year. All Harbour Trust residential Headland Park, or other sites, to meet their changing properties are highly sought-after and there are needs. The positive nature of the relationship between no vacancies except where properties are being the Harbour Trust and its tenants and the unique refurbished. Planning and design were advanced for environmental setting of the site are vital in attracting the refurbishment of two heritage houses at Middle and retaining tenants. Head Road and Dominion Crescent with works being During the year reported, planning for infrastructure commenced in 2016. works at Chowder Bay, including improvements to access between the wharf and the site’s upper levels, Licensing and Venue Hire and major refurbishments to Building 1 have been Short-term commercial licensing and venue hire is an advanced. The Harbour Trust is working in cooperation important way of promoting Harbour Trust sites to with its tenants to jointly develop and fund these a broad audience, including regional, interstate and
initiatives. overseas markets. In 2015-16, these events brought HARBOUR TRUST ANNUAL REPORT 2015-16 The legal proceedings regarding the proposed over 29,000 visitors to Harbour Trust sites. HARBOUR TRUST ANNUAL REPORT 2015-16 aged care facility at Terminal 10 were discontinued As part of its Business Development Strategy, the in November 2015 by consent and on a ‘without Harbour Trust is directing its efforts toward securing a admission’ basis and the proposal will not proceed. more diverse range of larger, recurrent events that are The Harbour Trust is seeking community input to a major drawcard for attracting both visitors and other assist in determining a strategy for the future use of similar large-scale events. On Cockatoo Island, the these buildings. Considerable capital investment will organisation seeks to maximise the flow-on benefits be required outside of the organisation’s resources to arising from events back into camping, accommodation utilise the buildings for any appropriate future use. and conference usage. There are a number of regular major events such as Hillsong annual conference that are testament to the island’s unique qualities which make it an attractive venue for such events. Master Gunners Cottage, Georges Heights. Credit: Mauricio Caicedo. 47 Growth & Enterprise
Accommodation During the year reported, the Harbour Trust invested The Harbour Trust’s accommodation business in an upgrade of Cockatoo Island’s conference facilities comprises the Cockatoo Island Campsite, the Heritage and the emphasis in 2015-16 has been in securing Houses and Harbour View Apartments. During the regular corporate users and creating conference and year reported, the campground remained popular with accommodation packages. school and family groups. In April 2016, the Australian Cockatoo Island and North Head Sanctuary continue Wallabies rugby union team held a successful training to be popular locations for film and TV production. camp on the island. As part of the Business Development Strategy, the The packaging of accommodation with events and Harbour Trust will be building stronger industry special themes such as New Year’s Eve maximizes both relationships and developing promotional packages to revenues and visitor experience. Although there are secure more of these activities. seasonal factors that impact on the appeal of Cockatoo Island’s accommodation portfolio, the Harbour Trust is investigating opportunities to further establish the island as a year-round short-stay destination. www.harbourtrust.gov.au
LEFT Yering Station Wine Bar, Biloela House, 20th Biennale of Sydney, Cockatoo Island. Credit: Geoff Magee. 48 RIGHT Garden Apartment, Cockatoo Island. Credit: Geoff Magee. Chiharu Shiota, Conscious Sleep1, 20th Biennale of Sydney, Cockatoo Island. Credit: Geoff Magee. Innovation & Operations Corporate governance Name Meetings attended
The Executive Director manages the Harbour Trust’s Mr R Jeffs, Chair 1 out of possible 1 affairs subject to the Harbour Trust’s directions and Mr R Butterworth 0 out of possible 1 in line with the Harbour Trust’s policies. Mr P Hinchey 1 out of possible 1 Trustees’ meetings The Portfolio Audit Committee has been established There were nine meetings of the Harbour Trust in the by the Accountable Authorities of the Department 2015-16 financial year. Members attended as follows: of the Environment, the Director of National Parks, Name Meetings attended and the Sydney Harbour Federation Trust in compliance with Section 45 of the Public Governance, Mr K McCann AM, Chair 8 out of possible 9 Performance and Accountability Act 2013 (PGPA Former Mayor of Manly J Hay, AM 6 out of possible 7 Act) and Public Governance, Performance and Mr J Carrozzi 2 out of possible 2 Accountability Rule 2014, Section 17 Audit committee for Commonwealth Entities. Ms J Cashman 7 out of possible 9 The Portfolio Audit Committee’s role is to provide Ms S Herman 2 out of possible 2 independent assurance to the Accountable Authorities Ms S Hook 1 out of possible 2 on each entity’s financial and performance reporting Ms P Braxton-Smith 5 out of possible 5 responsibilities, risk oversight and management, Mr R Jeffs 7 out of possible 7 and system of internal control and compliance. The Portfolio Audit Committee is not responsible for the The Hon. L McLeay 6 out of possible 7 executive management of these functions. The Portfolio Audit Committee engages with management in a Ethics constructive and professional manner in discharging its The Harbour Trust Board, staff and volunteers abide advisory responsibilities and formulating its advice to by the organisation’s Code of Conduct and undertake the Accountable Authorities. an induction process and have appropriate training The Department’s Portfolio Audit Committee met when required. on four occasions during the reporting period. The (Acting) Executive Director of the Harbour Trust Audit, Risk and Compliance Committees attended these meetings. The Harbour Trust’s Audit, Risk and Compliance Committee met for the last time on 1 September Community Advisory Committee 2015. From this date, the Harbour Trust commenced See Appendix 2 for a list of the Community using the Department of the Environment’s Portfolio Advisory Committee members for each of the Audit Committee. Harbour Trust’s sites. The Harbour Trust’s Audit, Risk and Compliance Committee oversaw: Fraud control
● effective identification and management of risks The Harbour Trust has adopted the Commonwealth ● Fraud Control Guidelines as the model for its Fraud reliable financial and management reporting HARBOUR TRUST ANNUAL REPORT 2015-16 ● compliance with applicable laws and regulations Control Policy. A detailed Fraud Risk Assessment was ● maintenance of an effective and efficient used to inform the Harbour Trust’s Fraud Control Plan audit service which in turn drives control mechanisms, including fraud ● effective fraud prevention and control measures awareness training and internal and external audits of key functions. The Harbour Trust Board and Portfolio There was one meeting of the Audit, Risk and Audit Committee oversee fraud risk management. Compliance Committee during the 2015-16 financial year with members attending as follows: Indemnities and insurance The Harbour Trust took out Directors’ and Officers’ liability insurance with our insurers, Comcover, for the 2015‒16 period. North Head Sanctuary heritage restoration volunteer Gerry Butler. Credit: Ian Evans. 51 Innovations & Operations
Human Resources
The Harbour Trust did not provide any indemnities Employees to directors or officers for liabilities or claims against Employees of the Harbour Trust are engaged under them in 2015‒16. section 48 of the Sydney Harbour Federation Trust Act 2001 with the terms and conditions of employment Procurement according to the Harbour Trust’s Enterprise The Harbour Trust’s guidelines and financial Agreement 2016-19. The current number of employees instructions for purchasing goods and services are stands at 86, comprising 63 full-time, 9 part-time and consistent with the Commonwealth Procurement Rules. 14 casual employees. Internal audits are conducted against those criteria. The Tender Review Committee considers tenders Learning and Development estimated to be in excess of $250,000. It reviewed one The Harbour Trust encourages the growth of skills and tender during the 2015-16 financial year. This tender knowledge of their employees to meet the needs of the was for the remediation works to the Powerhouse organisation now and into the future. chimney on Cockatoo Island. The Learning and Development Plan for 2015-16 revolved around training employees in: Tendering and contracting ● Perception Leadership and Talent Analytics The unique heritage nature of the sites, buildings and for middle management equipment demand a wide variety of highly specialised ● Corporate governance skills that are not always readily available in our existing ● Risk management staff. We engage specialist consultants for these roles. ● Fraud awareness The Harbour Trust engaged 48 consultants with a total ● Excel software training value of $584,814 (including GST) to provide specialist ● Emergency response and fire warden training advice on: ● Managing difficult people ● legal matters ● Work Health and Safety (WHS) qualifications and ● planning working safely ● business matters ● Maintaining employees’ qualifications required for ● engineering services the role ● archaeology ● Maintaining employees’ industry knowledge ● conservation ● Updates on new or changed legislation ● design ● environmental risk management Public Interest Disclosures ● air quality The Sydney Harbour Federation Trust reported to ● historical research and interpretation the Commonwealth Ombudsman in June 2016 that it ● communications had received no public interest disclosures. This is a ● site safety requirement of the Public Interest Disclosure Act 2013. ● other technical aspects relating to sites.
Classification Male Female Full-time Part-time Ongoing Non-ongoing Casual Executive Director 1 0 1 0 0 1 0 Senior Executive 2 3 5 0 1 4 0 EL2 6 3 6 3 3 6 0 EL1 8 7 13 2 2 13 0 L6 1 8 7 2 1 8 0 L5 7 1 8 0 2 6 0 L4 5 3 8 0 1 7 0 L3 6 8 12 2 0 14 0 L1-2 4 12 2 0 0 2 14
www.harbourtrust.gov.au Trainees 0 1 1 0 0 1 0 52 Total 40 46 63 9 10 62 14 Access and safety
Risk Management Workplace Health and Safety Risk management is an integral part of all Harbour The Harbour Trust and all workers recognise their Trust projects and events. During the reporting obligations under the Work Health and Safety Act period, the Harbour Trust implemented key policies 2011, its related regulations and codes of practice. to support the government’s Protective Security The Harbour Trust’s Workplace Health and Safety Policy Framework. The organisation also updated Committee is a key part of this system by discussing, its Risk Management Policy and Business Continuity consulting and monitoring workplace health and Management Policy to incorporate amendments safety within the Harbour Trust. recommended by our internal auditors after a review of the Harbour Trust’s Risk Management framework. WHS statistics Operational risk registers have been introduced to Table: WHS statistics 2014-15 and 2015-16 for improve the monitoring of the dynamic nature and employees, volunteers and contractors profile of the Harbour Trust’s roles and functions. The Harbour Trust’s Internal Audit service provider Hazards, Incidents, Injuries 2014-15 2015-16 reviewed contractor accreditation and WHS framework Number of incidents 10* 10 during the year. and accidents reported As part of the risk management strategy, an internal Number of lost time injuries 0 0 audit tool is used whereby major tenders and randomly selected smaller value procurements are assessed *Restated figure. against Commonwealth Procurement Rules. HARBOUR TRUST ANNUAL REPORT 2015-16
Platypus Planning Open Day, May 2016. Credit: Geoff Magee. 53 Innovations & Operations
Equity and diversity The Harbour Trust is committed to the principles Achievements of equity and diversity ensuring our workforce is As at the 30 June 2016, the Harbour Trust had a representative of the broader Australian community. goal of achieving two full-time indigenous positions The Harbour Trust has put in place a Disability Action on its staff. Currently, the organisation has one Plan and an Indigenous Employment Strategy to help indigenous employee. achieve this objective. As part of its RAP, the organisation:
● changed its primary source of office supplies to Disability Action Plan Kulbardi Australia
The Harbour Trust Disability Action Plan outlines how ● donated 300 copies of the book The Story of the needs and preferences of people with a disability Bungaree to 10 local Mosman schools. The are considered when planning, delivering, promoting publication tells the story of indigenous leader and evaluating its services. The organisation also has Bungaree who was granted land at Georges a responsibility to ensure that people face no barriers Heights by Governor Macquarie in 1815. Each to employment. It will provide reasonable adjustments book contained an introductory sticker in the to its workplaces to enable staff with a disability to be front acknowledging the donation from the fully productive. Sydney Harbour Federation Trust.
As at 30 June 2016: ● progressed in its planning for an event in 2017 to ● The proportion of employees with disability commemorate Bungaree’s Farm.
relative to the whole workforce is 2.3% ● added an Indigenous Representative position to ● The organisation has not undertaken targeted the Community Advisory Committee to ensure recruitment of employees with disability relative a consistent connection with the Indigenous to all new recruits community in committee discussions.
Judicial decisions and reviews by Indigenous Employment Strategy outside bodies The Indigenous Employment Strategy focuses on Case NSD284/2015 was due to be heard in the Federal providing opportunities to increase the representation Court on 30 November 2015. Prior to the hearing, of Aboriginal and Torres Strait Islander people working the Headland Preservation Group Inc discontinued at the Harbour Trust. As part of this strategy, the proceedings against the Sydney Harbour Federation Harbour Trust introduced the Reconciliation Action Trust by consent and on a ‘without admission’ basis. Plan (RAP). The RAP guides the Harbour Trust in: There were no judicial decisions or decisions of ● protecting and promoting the indigenous heritage other administration appeals tribunals that have on its sites had a significant impact on the operation of the ● liaising with the Aboriginal community to assist Harbour Trust. with its objectives There were no reports on the operations of the ● fostering the active participation of Aboriginal Harbour Trust by the Auditor-General (other than people in activities across its sites the report on financial statements), or reports by a ● welcoming Aboriginals and Torres Strait Islanders parliamentary committee. as employees. Ministerial directions There were no ministerial directions given to the Harbour Trust during the reporting period.
www.harbourtrust.gov.au Aerial views of Woolwich Dock and Parklands (front) 54 and Cockatoo Island (back). Credit: Mark Merton.
Independent Auditor’s Report
To the Minister for the Environment and Energy I have audited the accompanying financial statements Accountable Authority’s Responsibility for the of Sydney Harbour Federation Trust and the Financial Statements consolidated entity for the year ended 30 June 2016, The Board of the Sydney Harbour Federation Trust is which comprise: responsible under the Public Governance, Performance • Statement by Members, Executive Director and Accountability Act 2013 for the preparation and and Chief Financial Officer; fair presentation of annual financial statements that • Statement of Comprehensive Income; comply with Australian Accounting Standards and the rules made under that Act and is also responsible • Statement of Financial Position; for such internal control as the Board determines • Statement of Changes in Equity; is necessary to enable the preparation and fair • Cash Flow Statement; presentation of financial statements that are free from • Notes comprising a Summary of Significant material misstatement, whether due to fraud or error. Accounting Policies and other explanatory Auditor’s Responsibility information. My responsibility is to express an opinion on the The consolidated entity comprises the Sydney Harbour financial statements based on my audit. I have Federation Trust and the entities it controlled at the conducted my audit in accordance with the Australian year’s end or from time to time during the year. National Audit Office Auditing Standards, which Opinion incorporate the Australian Auditing Standards. These auditing standards require that I comply with relevant In my opinion, the financial statements of the Sydney ethical requirements relating to audit engagements Harbour Federation Trust and the consolidated entity: and plan and perform the audit to obtain reasonable (a) comply with Australian Accounting Standards and assurance about whether the financial statements are the Public Governance, Performance and Accountability free from material misstatement. (Financial Reporting) Rule 2015; and An audit involves performing procedures to obtain (b) present fairly the financial position of the Sydney audit evidence about the amounts and disclosures Harbour Federation Trust and the consolidated entity in the financial statements. The procedures selected as at 30 June 2016 and their financial performance and depend on the auditor’s judgement, including the cash flows for the year then ended. assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the www.harbourtrust.gov.au
56 circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Accountable Authority of the entity, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Independence In conducting my audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the requirements of the Australian accounting profession.
Australian National Audit Office
Rahul Tejani Senior Director Delegate of the Auditor-General Canberra HARBOUR TRUST ANNUAL REPORT 2015-16 16 September 2016
57 Financial Statements
Table of Contents
58 Statement by Members, Executive Sydney Harbour Federation Trust and its Consolidated Director and Chief Financial Officer Entities Statement by Members, Executive Director and Chief Financial Officer. 59 Statement of Comprehensive Income In our opinion, the attached financial statements for the year 60 Statement of Financial Position ended 30 June 2016 comply with subsection 42(2) of the Public 61 Statement of Changes in Equity Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as 62 Cash Flow Statement per subsection 41(2) of the PGPA Act. 63 Content of the Notes to the Financial Statements In our opinion, at the date of this statement, there are reasonable grounds to believe that the Sydney Harbour Federation Trust will be able to pay its debts as and when they become due and payable. This Statement is made in accordance with a resolution of the members.
Signed,
Kevin McCann Chairperson 15 September 2016
Susan Culverston Acting Executive Director 15 September 2016
David Llewelyn Acting Chief Financial Officer 15 September 2016 www.harbourtrust.gov.au
58 Statement of Comprehensive Income for the year ended 30 June 2016
Original 2016 2015 Budget NET COST OF SERVICES Notes $’000 $’000 $’000 Expenses Employee benefits 3A 6,408 6,796 7,206 Suppliers 3B 7,927 8,669 7,330 Depreciation and amortisation 3C 2,399 2,158 2,220 Write-down and impairment of assets 3D 198 39 30 Total expenses 16,932 17,662 16,786
LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 4A 3,127 2,823 2,911 Fees and fines 4B 358 355 249 Interest 4C 1,193 1,540 1,330 Rental income 4D 12,232 12,097 12,296 Other revenue 4E 479 979 38 Total own-source revenue 17,389 17,794 16,824
Gains Sale of assets 4F 2 - - Total gains 2 - - Total own-source income 17,391 17,794 16,824
Surplus 459 132 38
OTHER COMPREHENSIVE INCOME Other comprehensive income Items not subject to subsequent reclassification to net cost of services Change in asset revaluation reserve - 30,022 - Total other comprehensive income - 30,022 - Total comprehensive income 459 30,154 38
The above statement should be read in conjunction with the accompanying notes.
Budget variances commentary: HARBOUR TRUST ANNUAL REPORT 2015-16 Employee Benefits – lower than budget as a result of the delay in the budgeted Enterprise Agreement salary increases which did not come into effect until 1 June 2016. Further reductions were as a result of vacant positions and a secondment out during the year Other Revenue – increased significantly as a result of two grants awarded late in 2014-15 for conservation works at the 3rd Quarantine Cemetery at North Head and the Convict Workshops on Cockatoo Island. Suppliers - Additional expenditure was approved to complete outstanding maintenance and repairs emanating from the asset condition based maintenance plan.
59 Financial Statements
Statement of Financial Position as at 30 June 2016
Original 2016 2015 Budget ASSETS Notes $’000 $’000 $’000 Financial Assets Cash and cash equivalents 6A 1,353 3,282 1,592 Investments 6B 58,061 38,629 36,773 Trade and other receivables 6C 1,241 1,079 795 Total financial assets 60,655 42,990 39,160 Non-Financial Assets Land and buildings 7A 274,618 274,705 251,765 Infrastructure, plant and equipment 7B 29,308 29,103 14,316 Heritage and collections 7C 25,939 25,447 32,700 Intangibles 7D 281 243 399 Inventories 7F 126 110 75 Other non-financial assets 7G 137 179 15 Total non-financial assets 330,409 329,787 299,270 Total Assets 391,064 372,777 338,430
LIABILITIES Payables Suppliers 8A 1,203 133 725 Other payables 8B 4,206 4,836 3,148 Total payables 5,409 4,969 3,873 Provisions Employee provisions 9A 1,447 1,378 1,807 Other provisions 9B 1,204 3,885 - Total provisions 2,651 5,263 1,807 Total Liabilities 8,060 10,232 5,680
Net Assets 383,004 362,545 332,750
EQUITY Contributed equity 277,735 257,735 257,735 Reserves 98,617 98,409 66,348 Retained surplus 6,652 6,401 8,667 Total Equity 383,004 362,545 332,750
The above statement should be read in conjunction with the accompanying notes.
Budget variances commentary: Financial Assets, Investments and Contributed Equity - increased as a result of the additional equity injection provided to SHFT at additional Estimates 2015-16 for stage 1 refurbishment works at the former HMAS Platypus site. Non Financial Assets & Revaluation Reserves – Land, Heritage and Infrastructure Plant & Equipment categories varied to budget mainly as a result of an independent asset revaluation at 30 June 2015. Suppliers – higher expenditure in the repair and maintenance programs during June creating higher trade creditors at year end. Other Payables – higher than budgeted as a result of higher security deposits and unearned revenue from the accommodation business and capital project contributions. Other Provisions – provision higher than estimated due to the delay in completion of the final stage of the decontamination works on the former HMAS Platypus site. www.harbourtrust.gov.au
60 Statement of Changes in Equity for the year ended 30 June 2016 ------38 38 $’000 Budget 332,712 332,712 332,750 - - - - - 132 2015 $’000 30,154 30,022 362,545 332,391 332,391 - - - - Total Equity Total 459 459 2016 $’000 20,000 20,000 362,545 362,545 383,004 ------$’000 257,735 257,735 257,735 257,735 Budget 257,735 257,735 ------2015 $’000 257,735 257,735 257,735 ------Contributed Equity Contributed 2016 $’000 277,735 257,735 257,735 20,000 20,000 ------$’000 60,150 60,150 60,150 Budget ------2015 $’000 90,171 60,149 60,149 30,022 30,022 Reserve ------Asset Revaluation Asset Revaluation 2016 $’000 90,171 90,171 90,171 ------6,198 6,198 6,198 6,198 $’000 Budget ------2015 6,198 6,198 8,238 $’000 2,040 2,040 - - - - - 208 2016 8,238 8,238 2,399 8,446 $’000 Asset Renewal Reserve Asset Renewal (2,191) ------38 38 8,667 8,629 8,629 $’000 Budget - - - - 132 132 2015 6,401 8,309 8,309 $’000 (2,040) (2,040) - - - Retained Surplus Retained 459 459 2016 2,191 6,652 (208) 6,401 6,401 $’000 (2,399) HARBOUR TRUST ANNUAL REPORT 2015-16 Closing balance as at 30 June Closing The above statement should be read in conjunction with the accompanying notes. in conjunction with the accompanying be read should statement The above commentary: variances Budget site. at the former HMAS Platypus works 1 refurbishment for stage SHFT to 2015-16 at Additional Estimates – additional equity injection of $20 million provided Equity Contributed Total transactions with owners transactions Total Transactions with owners Transactions injection - Appropriations Equity Total comprehesive income comprehesive Total Surplus for the year Surplus Comprehensive income Comprehensive income Other comprehensive Total asset renewal reserve asset renewal Total Transfer (from) Retained Surplus Retained (from) Transfer Asset Renewal Reserve Asset Renewal Surplus Retained to Transfer Adjusted opening balance Adjusted Opening balance Balance carried forward year previous from
61 Financial Statements
Cash Flow Statement for the year ended 30 June 2016
Original 2016 2015 Budget Notes $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Sales of goods and rendering of services 3,554 3,087 3,457 Rent income 12,995 13,140 13,566 Interest 61 105 260 Other revenue 559 1,310 - Total cash received 17,169 17,642 17,283 Cash used Employee benefits (6,620) (6,749) (7,058) Suppliers (8,427) (9,604) (8,427) Net GST paid (21) (1,010) (576) Total cash used (15,068) (17,363) (16,061) Net cash from/(used by) operating activities 10 2,101 279 1,222
INVESTING ACTIVITIES Cash received Proceeds from sale of assets 2 - - Investments 68,592 90,217 72,670 Total cash received 68,594 90,217 72,670 Cash used Investments (86,895) (79,438) (74,000) Purchase of property, plant and equipment (5,729) (10,186) (1,970) Total cash used (92,624) (89,624) (75,970) Net cash from/(used by) investing activities (24,030) 593 (3,300)
FINANCING ACTIVITIES Cash received Contributed equity 20,000 - - Total cash received 20,000 - - Net cash from financing activities 20,000 - - Net increase (decrease) in cash held (1,929) 872 (2,078) Cash and cash equivalents at the beginning of 3,282 2,410 3,672 the reporting period Cash and cash equivalents at the end of the 6A 1,353 3,282 1,594 reporting period
The above statement should be read in conjunction with the accompanying notes.
Budget variances commentary: Other Revenue – increase in receipts as a result of two grants awarded to SHFT late in 2014-15 for conservation works of 3rd Quarantine Cemetery at North Head and the Convict Workshop on Cockatoo Island. Employee Benefits – lower than budget as a result of the delay in the budgeted Enterprise Agreement salary increases which did not come into effect until 1 June 2016. Further reductions were as a result of vacant positions and a secondment out during the year. www.harbourtrust.gov.au
62 Content of the Notes to the Financial Statements
Note 1: Summary of Significant Accounting Policies Note 2: Events After the Reporting Period Note 3: Expenses Note 4: Own-Source Income Note 5: Fair Value Measurements Note 6: Financial Assets Note 7: Non-Financial Assets Note 8: Payables Note 9: Provisions Note 10: Cash Flow Reconciliation Note 11: Senior Management Personnel Remuneration Note 12: Financial Instruments Note 13: Reporting of Outcomes Note 14: Commitments Note 15: Contingencies Note 16: Sydney Harbour Conservancy HARBOUR TRUST ANNUAL REPORT 2015-16
63 Financial Statements
Note 1: Summary of Significant Accounting Policies Harbour Conservancy is a Trust for which the Sydney Harbour Conservancy Limited (company limited by guarantee) is Trustee 1.1 Objectives of Sydney Harbour Federation Trust (refer to Note 16 for further details). (the “Trust” or “SHFT”) The accounting policies of the Sydney Harbour Conservancy The Trust is an Australian Government accountable authority. Limited and Sydney Harbour Conservancy are consistent The Trust is structured to meet one outcome: with those of the Trust and its assets, liabilities and results have been consolidated with the parent entity accounts Outcome 1: Enhanced appreciation and understanding of the in accordance with the Accounting Standards. All internal natural and cultural values of Sydney for all visitors, through transactions and balances have been eliminated on the remediation, conservation and adaptive re-use of, and consolidation. access to, Trust lands on Sydney Harbour. 1.3 Significant Accounting Judgements and Estimates The continued existence of the Trust in its present form and In the process of applying the accounting policies listed in this with its present programs is dependent on Government policy. note, the Trust has made the following judgements that have 1.2 Basis of Preparation of the Financial Statements the most significant impact on the amounts recorded in the The financial statements are required by section 42 of the Public financial statements: Governance, Performance and Accountability Act 2013 and are • The fair value of land has been taken to be the market value General Purpose Financial Statements. of similar properties as determined by an independent The financial statements have been prepared in accordance with: valuer. Buildings have been valued using depreciated replacement cost and therefore the valuer has provided an a) Finance Reporting Rule 2015 (FRR) for reporting periods estimate with respect to the replacement cost. ending on or after 1 July 2015; and • A provision for decontamination works at HMAS Platypus b) Australian Accounting Standards and Interpretations issued has been reflected in the Trust’s balance sheet. The value by the Australian Accounting Standards Board (AASB) that of the provision in the Statement of Financial Position is apply for the reporting period. based on funds provided by the Department of Defence The financial statements have been prepared on an accrual to complete the works. At the time of these statements basis and in accordance with the historical cost convention, the major remediation contract for stage 2 works has except for certain assets and liabilities at fair value. Except been completed and the final ‘make good’ works are to be where stated, no allowance is made for the effect of changing completed within the next 6 months. prices on the results or the financial position. The Harbour Trust is currently undertaking the remaining The financial statements are presented in Australian dollars project works, namely the wharf works and ‘make good’ and values are rounded to the nearest thousand dollars unless landscaping works at Platypus. These works are expected to be otherwise specified. completed by December 2016. Unless an alternative treatment is specifically required by · The provision held for doubtful debts is based on overdue an Accounting Standard or the FRR, assets and liabilities are receivables greater than 90 days where an arrears recognised in the Statement of Financial Position when and agreement has not been finalised or where it has been only when it is probable that future economic benefits will flow assessed that the debt is unlikely to be recovered. to the Trust or a future sacrifice of economic benefits will be No accounting assumptions or estimates have been identified required and the amounts of the assets or liabilities can be that have a significant risk of causing a material adjustment reliably measured. However, assets and liabilities arising under to carrying amounts of assets and liabilities within the next executory contracts are not recognised unless required by an reporting period. Accounting Standard. 1.4 New Australian Accounting Standards Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies. Adoption of New Australian Accounting Standard Requirements Unless alternative treatment is specifically required by an No accounting standard has been adopted earlier than the accounting standard, income and expenses are recognised application date as stated in the standard. No new accounting in the statement of comprehensive income when, and only standards, amendments to standards and interpretations when, the flow, consumption or loss of economic benefits has issued by the Australian Accounting Standards Board that are occurred and can be reliably measured. applicable in the current period have had a material financial Consolidation and associated company impact on the Trust. The financial statements show information for the economic Future Australian Accounting Standard Requirements entity only; this reflects the consolidated results for the parent entity, the Sydney Harbour Federation Trust, and its New standards, amendments to standards, and interpretations controlled entities, Sydney Harbour Conservancy Limited have been issued by the Australian Accounting Standards Board and Sydney Harbour Conservancy. The results of the parent but are effective for future reporting periods. It is estimated that entity do not differ materially from the economic entity and the impact of adopting these pronouncements, when effective, have therefore not been separately disclosed. The Sydney will have no material financial impact on future reporting periods. www.harbourtrust.gov.au
64 Standard/Interpretation Application Date Nature of impending change/s in accounting policy and likely impact on application AASB 15 Revenue from 1 July 2017 This revised Standard will replace AASB 111 Construction Contracts and AASB 118 Contracts with Customers Revenue. The main objectives of the new AASB 15 are to: • Provide a single revenue recognition model based on the transfer of goods and services and the consideration expected to be received in return for that transfer. • Remove inconsistencies and weaknesses in existing revenue recognition standards. • Simplify the preparation of financial statements and enhance disclosures about revenue. Likely impact: This standard will have no material impact on the Trust’s contracts with tenants and licensees.
AASB 9 Financial Instruments 1 July 2018 This revised Standard represents the finalisation of the three phase project to replace AASB 139 Financial Instruments: Recognition and Measurement. Likely impact: This standard will have an impact on the categorisation, recognition and measurement of financial instruments.
AASB 16 Leases 1 July 2019 AASB 16 replaces AASB 117 and some lease-related Interpretations. Likely impact: This standard will have an impact on the transactions and balances recognised in: • Lease assets and financial liabilities; and • Operating cash flows and financing cash flows.
1.5 Revenue Rental Income Revenue from the sale of goods is recognised when: Rental revenue for operating leases is recognised on a straight line basis over the term of the lease, except when an alternative • The risks and rewards of ownership have been transferred to basis is more representative of the pattern of service rendered the buyer; through the provision of the leased premises. Lease incentives • The authority retains no managerial involvement nor effective offered under operating leases are amortised on a straight line control over the goods; basis in the profit or loss over the life of the lease. • The revenue and transaction costs incurred can be reliably 1.6 Gains measured; and Sale of Assets • It is probable that the economic benefits associated with the Gains from disposal of non-current assets are recognised when transaction will flow to the Trust. control of the asset has passed to the buyer. Revenue from rendering of services is recognised by reference 1.7 Employee Benefits to the stage of completion of contracts at the reporting date. Liabilities for services rendered by employees are recognised at The revenue is recognised when: the reporting date to the extent that they have not been settled. • The amount of revenue, stage of completion and transaction Liabilities for ‘short-term employee benefits’ (as defined in AASB costs incurred can be reliably measured; and 119 Employee Benefits) and termination benefits due within • The probable economic benefits associated with the twelve months of the reporting period are measured at their transaction will flow to the Trust. nominal amounts. The stage of completion of contracts at the reporting date is The nominal amount is calculated with regard to the rates determined by reference to the proportion that costs incurred to expected to be paid on settlement of the liability. HARBOUR TRUST ANNUAL REPORT 2015-16 date bear to the estimated total costs of the transaction. Other long-term employee benefits are measured as net total Receivables for goods and services, which have 30 day terms, of the present value of the defined benefit obligation at the are recognised at the nominal amounts due less any impairment end of the reporting period minus the fair value at the end of allowance account. Collectability of debts is reviewed at the end the reporting period of plan assets (if any) out of which the of the reporting period. Allowances are made when collectability obligations are to be settled directly. of the debt is no longer probable. Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.
65 Financial Statements
Leave 1.9 Cash The liability for employee benefits includes provision for annual Cash and cash equivalents include cash on hand and demand leave and long service leave. No provision has been made for sick deposits in bank accounts with an original maturity of 3 months leave as all sick leave is non-vesting. The average sick leave taken or less that are readily convertible to known amounts of cash in future years by employees of the Trust is estimated to be less and subject to insignificant risk of changes in value. Cash is than the annual entitlement for sick leave. recognised at its nominal amount. The leave liabilities are calculated on the basis of employees’ 1.10 Fair Value Measurement remuneration at the estimated salary rates that will be applied The Trust deems transfers between levels of the fair value at the time the leave is taken, including the Trust’s employer hierarchy to have occurred at the end of the reporting period. superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on 1.11 Financial Assets termination. The Trust classifies its financial assets in the following categories: The estimate of the present value of the liability takes into • ‘held to maturity investments’; and account attrition rates and pay increases through promotion • ‘loans and receivables’. and inflation. The classification depends on the nature and purpose of Separation and Redundancy the financial assets and is determined at the time of initial Provision is made for separation and redundancy benefit recognition. Financial assets are recognised and derecognised payments. The Trust recognises a provision for termination when upon ‘trade date’. it has developed a detailed formal plan for the terminations and Effective interest method has informed those employees affected that it will carry out The effective interest method is a method of calculating the the terminations. amortised cost of a financial liability and of allocating interest Superannuation expense over the relevant period. The effective interest rate is Certain employees of the Trust are members of the the rate that exactly discounts estimated future cash payments Commonwealth Superannuation Scheme (CSS), the Public through the expected life of the financial asset, or, where Sector Superannuation Scheme (PSS) or the PSS Accumulation appropriate, a shorter period. Plan (PSSap). Income from investments is recognised on an effective The CSS and PSS are defined benefit schemes for the Australian interest rate basis. Government. The PSSap is a defined contribution scheme. Loans and receivables The liability for defined benefits is recognised in the financial Trade receivables, loans and other receivables that have fixed or statements of the Australian Government and is settled by the determinable payments that are not quoted in an active market Australian Government in due course. This liability is reported are classified as ‘loans and receivables’. The Trust has no loans. in the Department of Finance and Deregulation’s administered Receivables are included in current assets. Receivables are schedules and notes. measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective The Trust makes employer contributions to the employee interest rate. superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government. Impairment of financial assets Employer superannuation contributions for employees who are Financial assets are assessed for impairment at each not members of the CSS or PSS are expensed in the financial reporting period. statements. There is no residual liability in respect of these Financial assets held at amortised cost - contributions. The Trust accounts for the contributions as if they If there is objective evidence that an impairment loss has were contributions to defined contribution plans. been incurred for loans and receivables or held to maturity The liability for superannuation recognised as at 30 June investments held at amortised cost, the amount of the loss represents outstanding contributions for the final fortnight of is measured as the difference between the asset’s carrying the year. amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The 1.8 Leases carrying amount is reduced by way of an allowance account. A distinction is made between finance leases and operating The loss is recognised in the Statement of Comprehensive leases. Finance leases effectively transfer from the lessor to Income. the lessee substantially all the risks and rewards incidental to 1.12 Financial Liabilities ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively Financial liabilities are classified as either financial liabilities retains substantially all such risks and benefits. at fair value through profit or loss or other financial liabilities. Financial liabilities are recognised and derecognised upon The Trust has no finance leases, and operating lease payments trade date. are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets. www.harbourtrust.gov.au
66 Other financial liabilities Following initial recognition at cost, infrastructure, plant and Other financial liabilities are initially measured at fair value, equipment are carried at fair value less accumulated depreciation net of transaction costs. and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts Other financial liabilities are subsequently measured at of assets do not differ materially from the assets’ fair values as amortised cost using the effective interest method, with at the reporting date. The regularity of independent valuations interest expense recognised on an effective yield basis. depends upon the volatility of movements in market values for Supplier and other payables are recognised at amortised the relevant assets. cost. Liabilities are recognised to the extent that the goods Revaluation adjustments are made on a class basis. Any or services have been received (and irrespective of having revaluation increment is credited to equity under the heading been invoiced). of asset revaluation reserve except to the extent that it reverses 1.13 Contingent Liabilities and Contingent Assets a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation Contingent Liabilities and Contingent Assets are not recognised decrements for a class of assets are recognised directly in the in the Statement of Financial Position but are reported in the surplus/deficit except to the extent that they reverse a previous relevant schedules and notes. They may arise from uncertainty revaluation increment for that class. as to the existence of a liability or asset or represent an existing liability or asset in respect of which settlement is not probable or Any accumulated depreciation as at the revaluation date is the amount cannot be reliably measured. Contingent assets are eliminated against the gross carrying amount of the asset and disclosed when settlement is probable but not virtually certain the asset restated to the revalued amount. and contingent liabilities are disclosed when settlement is greater Depreciation than remote. Depreciable infrastructure, plant and equipment assets are 1.14 Acquisition of Assets written-off to their estimated residual values over their estimated Assets are recorded at cost on acquisition except as stated useful lives to the Trust using, in all cases, the straight-line below. The cost of acquisition includes the fair value of assets method of depreciation. transferred in exchange and liabilities undertaken. Financial Depreciation rates (useful lives), residual values and methods assets are initially measured at their fair value plus transaction are reviewed at each reporting date and necessary adjustments costs where appropriate. are recognised in the current, or current and future reporting Assets acquired at no cost, or for nominal consideration, are periods, as appropriate. initially recognised as assets and income at their fair value at Depreciation rates applying to each class of depreciable asset the date of acquisition, unless acquired as a consequence of are based on the following useful lives: restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at 2016 2015 the amounts at which they were recognised in the transferor authority’s accounts immediately prior to the restructuring. Buildings on freehold land 10 to 125 years 10 to 125 years 1.15 Property, Plant and Equipment Infrastructure 5 to 50 years 10 to 50 years Asset Recognition Threshold Plant and equipment 3 to 20 years 3 to 20 years Purchases of infrastructure, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for All heritage and cultural assets have indefinite useful lives and purchases costing less than $2,000, which are expensed in the are not depreciated. year of acquisition other than where they form part of a group of Certain buildings held by the Trust have been classified as similar items which are significant in total. Heritage assets. As there is no forseeable limit to the period over Fair Value & Revaluations which these assets will be held or used they are not depreciated. Fair value for each class of asset equals the total of the most The aggregate amount of depreciation allocated for each class of recent revalued amounts and capital expenditure at cost asset during the reporting period is disclosed in Note 3C. subsequent to the last valuation. Impairment HARBOUR TRUST ANNUAL REPORT 2015-16 Fair values of each class of asset are determined as All assets were assessed for impairment at 30 June 2016. Where shown below: indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s Asset Class Fair valued measured at recoverable amount is less than its carrying amount. Land Market appraisal The recoverable amount of an asset is the higher of its fair Buildings exc. Leasehold Depreciated replacement cost value less costs to sell and its value in use. Value in use is the improvements present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset Leasehold improvements Depreciated replacement cost is not primarily dependent on the asset’s ability to generate Infrastructure, plant and Depreciated replacement cost future cash flows, and the asset would be replaced if the Trust equipment were deprived of the asset, its value in use is taken to be its Following initial recognition at cost, infrastructure, plant and Heritage and cultural assets Market appraisal depreciated replacement cost. 67 Financial Statements
Derecognition AASB 13 applies when another accounting standard requires or An item of infrastructure, plant and equipment is derecognised permits fair value measurements or disclosures about fair value upon disposal or when no further future economic benefits are measurements. The standard requires entities to classify these expected from its use or disposal. measurements into a ‘fair value hierarchy’ based on the nature of the inputs.: Heritage and Cultural Assets Level 1 - quoted prices in active markets for identical assets and The Trust owns and manages buildings, monuments and liabilities that the entity can access at the measurement date. structures that have significant heritage and cultural value (with an aggregated fair value of $25.939m (2015: $25.447m)). The Level 2 - inputs other than quoted market prices included Trust has classified them as heritage and cultural assets as they within Level 1 that are observable for the asset or liability, either were primarily used for purposes that relate to their cultural directly or indirectly. significance. The Trust has adopted appropriate curatorial and Level 3 - unobservable inputs for the asset or liability. preservation policies for these heritage assets and the items are deemed to have indefinite useful lives and hence are not 1.16 Intangibles depreciated. The Trust’s curatorial and preservation policies are The Trust’s intangibles comprise software purchased publicly available within the Trust’s Management Plans at externally for internal use. These assets are carried at cost less http://www.harbourtrust.gov.au/planning-projects/strategic-plans. accumulated amortisation and impairment losses. Asset Renewal Reserve Software is amortised on a straight-line basis over its The Trust established an asset renewal reserve in 2012-13 to anticipated useful life. The useful lives of the Trust’s software is set aside funds for the future asset renewal of its significant 3 to 7 years (2014-15: 3 to 5 years). asset base. The Trust transferred $2.399 million from its All software assets were assessed for indications of impairment accumulated results to a general equity reserve account called as at 30 June 2016. “Asset Renewal Reserve” (see Statement of Changes in Equity in 2015/16). The asset renewal reserve will be supplemented at 1.17 Inventories the end of each financial year by an amount equivalent to the Inventories held for sale are valued at the lower of cost and net minimum 100% of the annual depreciation expense, subject to realisable value and consist of externally produced clothing, a review of the asset renewal plans. The reserve funds will be merchandise and publications. drawn down to fund future major capital renewal works to Trust Inventories acquired at no cost or nominal consideration are assets. In the 2016 year, a total of $2.191 million was spent on initially measured at current replacement cost at the date of major capital renewal works. acquisition. AASB 13 Fair Value Measurement 1.18 Taxation Fair value is a market-based measurement, not an entity The Trust is exempt from all forms of taxation except Fringe specific measurement. For some assets and liabilities, Benefits Tax (FBT) and the Goods and Services Tax (GST). observable market transactions or market information might be available. For other assets and liabilities, observable Revenues, expenses and assets are recognised net of GST: market transactions and market information might not be • except where the amount of GST incurred is not recoverable available. However, the objective of a fair value measurement from the Australian Taxation Office; and is to estimate the price at which an orderly transaction to sell • except for receivables and payables. the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (ie. an exit price) regardless of whether that price is directly observable or estimated using another valuation technique. (See Note 5A). www.harbourtrust.gov.au
68 Note 2: Events After the Reporting Period
There are no other events that have occurred after the reporting period that would have an effect on the Trust’s 2015-16 financial statements other than those that are already reflected in the financial statements. HARBOUR TRUST ANNUAL REPORT 2015-16
69 Financial Statements
Note 3: Expenses
2016 2015 $’000 $’000 Note 3A: Employee benefits Wages and salaries 5,632 5,945 Superannuation 624 624 Leave and other entitlements 127 192 Separation and redundancies 20 27 Other employee costs 5 8 Total employee benefits 6,408 6,796
Note 3B: Suppliers Goods and services supplied or rendered Corporate Overheads 886 1,013 Marketing, Programming & Events 643 714 Management of Environment 1,463 1,194 Site Maintenance & Planning 2,963 3,574 Security 714 682 Accommodation Management 562 521 Property Management 498 647 Total goods and services supplied or rendered 7,729 8,345
Goods supplied 564 560 Services rendered 7,165 7,785 Total goods and services supplied or rendered 7,729 8,345
Other supplier expenses Operating lease rentals - external parties - 32 Workers compensation premiums 198 292 Total other supplier expenses 198 324 Total supplier expenses 7,927 8,669
The Trust has provided resources free of charge to the Sydney Harbour Conservancy Ltd amounting to $7,245 (2015: $6,492), and to the Sydney Harbour Conservancy Fund amounting to $3,600 (2015: $3,200) during the year ended 30 June 2016.
2016 2015 $’000 $’000 Note 3C: Depreciation and amortisation Depreciation: Infrastructure, plant and equipment 1,056 695 Buildings 1,304 1,344 Total depreciation 2,360 2,039
Amortisation: Intangibles: Computer Software 39 29 Lease Incentives - 90 Total amortisation 39 119 Total depreciation and amortisation 2,399 2,158
Note 3D: Write-down and impairment of assets Asset Write-Downs from impairment on financial assets 198 39 impairment on non-financial assets - - Total write-down and impairment of assets 198 39
www.harbourtrust.gov.au The financial asset write-down is in relation to a provision for doubtful debts associated with the Trust’s trade debtors.
70 Note 4: Own-Source Income
2016 2015 Own-Source Revenue $’000 $’000
Note 4A: Sale of goods and rendering of services Provision of goods 53 36 Rendering of services 3,074 2,787 Total sale of goods and rendering of services 3,127 2,823
Note 4B: Fees and fines Infringements 358 355 Total fees and fines 358 355
Note 4C: Interest Deposits 1,193 1,540 Total interest 1,193 1,540
Note 4D: Rental income Property rentals and short-term hire 12,232 12,097 Total rental income 12,232 12,097
Note 4E: Other revenue Fees, Sponsorship & Infrastructure contribution 72 717 Grants - Department of Environment & Energy 407 262 Total other revenue 479 979
Note 4F: Sale of assets Infrastructure, plant and equipment: Proceeds from sale 2 - Net gain from sale of assets 2 - HARBOUR TRUST ANNUAL REPORT 2015-16
71 Financial Statements
Note 5: Fair Value Measurements
The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability.
Note 5A: Fair Value Measurements, Valuation Techniques and Inputs Used
Level 2 and 3 fair value measurements - valuation technique and the inputs used for assets and liabilities in 2016 Fair Value Measurements Category Valuation Inputs used2 Range2/3 1 2016 2015 (Level 1, technique(s) 2 or 3) $’000 $’000 Non-financial assets Land 197,268 196,708 Level 2 Market Direct comparison of similar approach open space land sales. Land size. Advised outstanding costs of remediation. Buildings 77,350 77,997 Level 2 Depreciated Building design, structure Building Replacement and materials used, current components Cost construction costs, assets useful range from life, visual inspection to estimate of $6,006 to written down value of asset used $5,405,533 Infrastructure, 29,308 29,103 Level 2 Depreciated Market replacement cost less $2,000 per item plant and equipment Replacement estimate of written down value to $7,746,984 for Cost of asset used. a hardstand Heritage and 25,939 25,447 Level 2 Depreciated Building design, structure and $3,025 per item collections Replacement materials used, replacement to $2,535,800 Cost market value, assets useful for an office life, site improvements, visual building inspection to estimate of written down value of asset used.
Total non-financial 329,865 329,255 assets
There has been transfers between level 2 and 3 fair value measurements during the 2015-16 year. 1. No change in valuation technique occurred during the period. 2. Significant unobservable inputs only. 3. Due to the range no weighted average has been calculated. www.harbourtrust.gov.au
72 Note 6: Financial Assets
2016 2015 $’000 $’000 Note 6A: Cash and cash equivalents Cash at bank 1,351 3,280 Cash on hand 2 2 Total cash 1,353 3,282
Note 6B: Investments Term Deposits 58,061 38,629 Total Investments 58,061 38,629
Cash at bank and investments include funding quarantined for the decontamination of HMAS Platypus ($1.203 million), Stage 1 Refurbishment HMAS Platypus ($20.000 million), reserves from the sale of Markham Close properties held for future capital renewal projects ($23.000 million), as well as the Trust's ongoing capital works and capital renewal.
2016 2015 $’000 $’000 Note 6C: Trade and other receivables Goods and Services Goods and services 718 619 Total receivables for goods and services 718 619
Other receivables Interest receivable 9 5 Other receivables 812 564 Total other receivables 821 569
Total trade and other receivables (gross) 1,539 1,188
Less impairment allowance account: Goods and services (151) - Fees and fines (147) (109) Total trade and other receivables (net) 1,241 1,079
All receivables are expected to be recovered in no more than 12 months.
2016 2015 $’000 $’000 Trade and other receivables (gross) are aged as follows: Not overdue 821 569 Overdue by:
Less than 30 days 394 315 HARBOUR TRUST ANNUAL REPORT 2015-16 31 to 60 days 12 25 61 to 90 days 70 45 More than 90 days 242 234 Total trade and other receivables (gross) 1,539 1,188
73 Financial Statements
Note 6: Financial Assets, continued
2016 2015 $’000 $’000 The impairment allowance account is aged as follows: Not overdue - - Overdue by: Less than 30 days - - 31 to 60 days - - 61 to 90 days (56) - More than 90 days (242) (109) Total Impairment allowance account (298) (109)
Receivables for Goods & Services Credit terms are net 30 days (2015: 30 days).
Reconciliation of the Impairment allowance account:
Movements in relation to 2016 Goods and services Other receivables Total $'000 $'000 $'000
Opening balance - (109) (109) Increase recognised in net surplus (151) (38) (189) Closing balance (151) (147) (298)
Movements in relation to 2015 Goods and services Other receivables Total $'000 $'000 $'000
Opening balance - (70) (70) Increase recognised in net surplus - (39) (39) Closing balance - (109) (109) www.harbourtrust.gov.au
74 Note 7: Non-Financial Assets
2016 2015 $’000 $’000 Note 7A: Land and buildings Freehold land - at fair value 197,268 196,708 Total freehold land 197,268 196,708 Buildings on freehold land: - at fair value 78,654 77,997 - accumulated depreciation (1,304) - Total buildings on freehold land 77,350 77,997
Total land and buildings 274,618 274,705
The Trust has completed the majority of decontamination works to its current sites. The cost of the remaining decontamination and remediation works has been taken into account in arriving at the fair values. No land or buildings are expected to be sold or disposed of within the next 12 months.
Note 7B: Infrastructure, plant and equipment Infrastructure, plant and equipment: - at cost 32,896 31,635 - accumulated depreciation (3,588) (2,532) Total infrastructure, plant and equipment 29,308 29,103
No indicators of impairment were found for infrastructure, plant and equipment. No infrastructure, plant and equipment is expected to be sold or disposed of within the next 12 months.
Note 7C: Heritage and collections Heritage assets: - at fair value 25,939 25,447 Total heritage assets 25,939 25,447
No heritage assets or collections are expected to be sold or disposed of within the next 12 months. Valuations were conducted by an independent valuer (Jones Lang LaSalle) in 2015. An internal desktop valuation was undertaken for buildings and infrastructure which indicated that there were no material movements in the depreciated replacement value of assets. Jones Lang LaSalle was asked to review open space land sales during 2015-16 and provided a letter of comfort to the Trust indicating that there had been no open space land sales since their last valuation and it was their opinion that it is unlikely that there have been any material changes in value of the Open Space Land adopted in their valuation report dated 30 June 2015.
All revaluations were conducted in accordance with the revaluation policy stated at Note 1. HARBOUR TRUST ANNUAL REPORT 2015-16
75 Financial Statements
Note 7: Non-Financial Assets, continued
2016 2015 $’000 $’000 Note 7D: Intangible assets Computer software at cost: Externally developed – in use 610 533 Total computer software 610 533 Accumulated amortisation (329) (290) Total intangibles 281 243
No intangibles are expected to be sold or disposed of within the next 12 months. No indicators of impairment were found for intangible assets.
Note 7E: Analysis of infrastructure, plant, equipment and intangibles
TABLE A – Reconciliation of the opening and closing balances of infrastructure, plant, equipment and intangibles (2015-16)
Buildings Infrastructure, Land on Freehold Total Land & Plant & Heritage & Intangibles Total Land Buildings Equipment Collections $’000 $’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2015 Gross book value 196,708 77,997 274,705 31,635 25,447 533 332,320 Accumulated depreciation/ - - - (2,532) - (290) (2,822) amortisation Total as at 196,708 77,997 274,705 29,103 25,447 243 329,498 1 July 2015 Additions: by purchase 560 657 1,217 904 849 77 3,047 Revaluations and impairments ------recognised in other comprehensive income Reclassification - - - 357 (357) - - Depreciation/ - (1,304) (1,304) (1,056) - (39) (2,399) amortisation expense Disposals/write-down ------Total as at 197,268 77,350 274,618 29,308 25,939 281 330,146 30 June 2016
Total as at 30 June 2016 represented by: Gross book value 197,268 78,654 275,922 32,896 25,939 610 335,367 Accumulated depreciation/ - (1,304) (1,304) (3,588) - (329) (5,221) amortisation 197,268 77,350 274,618 29,308 25,939 281 330,146 www.harbourtrust.gov.au
76 Note 7: Non-Financial Assets, continued
Note 7E: Analysis of infrastructure, plant, equipment and intangibles
TABLE A – Reconciliation of the opening and closing balances of infrastructure, plant, equipment and intangibles (2014-15)
Buildings Infrastructure, Land on Freehold Total Land & Plant & Heritage & Intangibles Total Land Buildings Equipment Collections $’000 $’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2014 Gross book value 179,324 76,390 255,714 17,082 32,423 398 305,617 Accumulated depreciation/ - (5,028) (5,028) (3,333) - (261) (8,622) amortisation Total as at 179,324 71,362 250,686 13,749 32,423 137 296,995 1 July 2014 Additions: by purchase 674 1,869 2,543 1,659 212 135 4,549 Revaluations and impairments 16,710 17,680 34,390 1,355 (5,723) - 30,022 recognised in other comprehensive income Reclassification - (11,570) (11,570) 13,035 (1,465) - - Depreciation/ - (1,344) (1,344) (695) - (29) (2,068) amortisation expense Disposals/write-down ------Total as at 196,708 77,997 274,705 29,103 25,447 243 329,498 30 June 2015
Total as at 30 June 2015 represented by: Gross book value 196,708 77,997 274,705 31,635 25,447 533 332,320 Accumulated depreciation/ - - - (2,532) - (290) (2,822) amortisation 196,708 77,997 274,705 29,103 25,447 243 329,498
2016 2015 $’000 $’000 Note 7F: Inventories Finished goods at cost 126 110 Total inventories 126 110 HARBOUR TRUST ANNUAL REPORT 2015-16 During the 2016 year $976 of inventory held for distribution was recognised as an expense (2015: $33,815). Expensing of inventory was high in 2015 as inventory stock was donated to school libraries as well as inventory adjustment to visitor guide numbers.
Note 7G: Other non-financial assets Lease incentives 111 164 Prepayments 26 15 Total other non-financial assets 137 179
Other non-financial assets expected to be settled: No more than 12 months 56 68 More than 12 months 81 111 Total other non-financial assets 137 179 77 Financial Statements
Note 8: Payables
2016 2015 $’000 $’000 Note 8A: Suppliers Trade creditors 1,146 19 Contract retentions 57 114 Total supplier payables 1,203 133
Supplier payables expected to be settled: No more than 12 months 1,203 133 More than 12 months - - Total supplier payables 1,203 133
Settlement is usually made within 30 days.
Note 8B: Other Payables Salaries and wages 34 251 Accrued expenses/suppliers 195 636 Bonds and security deposits 1,104 1,030 Unearned Revenue 2,873 2,919 Total Other Payables 4,206 4,836
Other payables expected to be settled: No more than 12 months 2,507 2,881 More than 12 months 1,699 1,955 Total Other Payables 4,206 4,836 www.harbourtrust.gov.au
78 Note 9: Provisions
2016 2015 $’000 $’000 Note 9A: Employee provisions Leave 1,447 1,378 Total employee provisions 1,447 1,378
Employee provisions are expected to be settled in: No more than 12 months 511 1,036 More than 12 months 936 342 Total employee provisions 1,447 1,378
Note 9B: Other provisions Provision for remediation - Platypus 1,204 3,885 Total other provisions 1,204 3,885
Other provisions are expected to be settled in: No more than 12 months 1,204 3,885 More than 12 months - - Total other provisions 1,204 3,885
Movements in relation to 2016 Provision for Total remediation $'000 $'000
As at 1 July 2015 3,885 3,885 Amounts used (2,681) (2,681) Total as at 30 June 2016 1,204 1,204
In accordance with the Memorandum of Understanding between the Trust and the Department of Defence signed on 5 June 2009, the Trust is entitled to claim variations from the Department of Defence above those funds provided to-date for additional decontamination costs incurred by the Trust in relation to HMAS Platypus. HARBOUR TRUST ANNUAL REPORT 2015-16
79 Financial Statements
Note 10: Cash Flow Reconciliation
2016 2015 $’000 $’000 Reconciliation of cash and cash equivalents as per Statement of Financial Position to Cash Flow Statement Cash and cash equivalents as per: Cash Flow Statement 1,353 3,282 Statement of Financial Position 1,353 3,282 Difference - -
Reconciliation of net contribution by services to net cash from/(used by) operating activities: Net contribution by services 459 132
Adjustments for non-cash items Depreciation and amortisation 2,399 2,158 Net write down of non-financial assets - - Gain on disposal of assets (2) - Investment activity (1,128) (1,436)
Changes in assets/liabilities (Increase) / decrease in trade & other receivables (109) 99 (Increase) / decrease in inventories (16) 25 (Increase) / decrease in prepayments (11) 1 Increase / (decrease) in employee provisions & payables (148) 127 Increase / (decrease) in suppliers 629 (1,044) Increase / (decrease) in security deposits 74 172 Increase / (decrease) in prepayments received (46) 45 Net cash from / (used by) operating activities 2,101 279 www.harbourtrust.gov.au
80 Note 11: Senior Management Personnel Remuneration
2016 2015 $’000 $’000 Note 11: Remuneration Paid to Senior Executives Short-term employee benefits: Salary 1,310,354 1,553,768 Total short-term employee benefits 1,310,354 1,553,768
Post-employment benefits: Superannuation 152,800 187,713 Total post-employment benefits 152,800 187,713
Other long-term benefits: Annual leave accrued 96,369 114,895 Long-service leave 19,827 50,114 Total other long-term benefits 116,196 165,009
Total senior executive remuneration expenses 1,579,350 1,906,490
Notes: 1. The total number of senior management personnel that are included in the above table is 17 individuals (2015: 17 individuals). The total number includes both board member and senior management remuneration. HARBOUR TRUST ANNUAL REPORT 2015-16
81 Financial Statements
Note 12: Financial Instruments
2016 2015 $'000 $'000 12A Categories of financial instruments Financial Assets Held-to-maturity investments Investments 58,061 38,629 Total held-to-maturity 58,061 38,629 Loans and receivables Cash at bank 1,351 3,280 Cash on hand 2 2 Receivables for goods and services 718 619 Interest receivable 9 5 Other receivables 812 564 Total loans and receivables 2,892 4,470 Total financial assets 60,953 43,099
Financial Liabilities Financial liabilities measured at amortised cost Trade creditors 1,146 19 Contract retentions 57 114 Salaries and wages 34 251 Accrued expenses/suppliers 195 636 Bonds and security deposits 1,104 1,030 Total financial liabilities measured at amortised cost 2,536 2,050
12B Net income and expense from financial assets Held-to-maturity investments Interest revenue (see note 4C) 1,128 1,436 Net gain held-to-maturity investments 1,128 1,436
Loans and receivables Interest revenue (see note 4C) 65 104 Net gain loans and receivables 65 104 Net gain from financial assets 1,193 1,540
12C Net income and expense from financial liabilities There was no net income or expense from financial liabilities for the year ended 30 June 2016 (2015 - Nil).
12D Fee income and expense There was no fee income or expense arising from financial instruments for the year ended 30 June 2016 (2015 - Nil). www.harbourtrust.gov.au
82 Note 12: Financial Instruments, continued
12E Fair value of financial instruments Carrying amount Fair value Carrying amount Fair value 2016 2016 2015 2015 $'000 $'000 $'000 $'000
FINANCIAL ASSETS Cash at bank 1,351 1,351 3,280 3,280 Cash on hand 2 2 2 2 Investments 58,061 58,061 38,629 38,629 Receivables for goods and services 718 718 619 619 Interest receivable 9 9 5 5 Other receivables 812 812 564 564 Total 60,953 60,953 43,099 43,099
FINANCIAL LIABILITIES Trade creditors 1,146 1,146 19 19 Contract retentions 57 57 114 114 Salaries and wages 34 34 251 251 Accrued expenses/suppliers 195 195 636 636 Bonds and security deposits 1,104 1,104 1,030 1,030 Total 2,536 2,536 2,050 2,050 HARBOUR TRUST ANNUAL REPORT 2015-16
83 Financial Statements
Note 12: Financial Instruments, continued
12F: Credit risk The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of trade receivables (2016: $1,539,000 and 2015: $1,188,000). The Trust has assessed the risk of the default on payment and has allocated $298,000 in 2016 (2015: $109,000) to an impairment allowance account. The Trust manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. In addition, the Trust has policies and procedures that guide employees debt recovery techniques that are to be applied. The Trust holds amounts on deposit and bank guarantees to mitigate against credit risk. Credit quality of financial instruments not past due or individually determined as impaired:
Not Past Due Nor Impaired Past due or impaired 2016 2015 2016 2015 $'000 $'000 $'000 $'000 Cash at bank 1,351 3,280 - - Cash on hand 2 2 - - Investments 58,061 38,629 - - Receivables for goods and services - - 718 619 Interest receivable 9 5 - - Other receivables 812 564 - - Total 60,235 42,480 718 619
Ageing of financial assets that are past due but not impaired for 2016
30 June 2016 0 to 30 days 31 to 60 days 61 to 90 days 90 + days Total $’000 $’000 $’000 $’000 $’000 Receivables for goods and services 394 12 70 242 718 Total 394 12 70 242 718
Ageing of financial assets that are past due but not impaired for 2015
30 June 2015 0 to 30 days 31 to 60 days 61 to 90 days 90 + days Total $’000 $’000 $’000 $’000 $’000 Receivables for goods and services 315 25 45 234 619 Total 315 25 45 234 619 www.harbourtrust.gov.au
84 Note 12: Financial Instruments, continued
12G: Liquidity risk The Trust’s financial liabilities are payables and accruals. The exposure to liquidity risk is based on the notion that the Trust will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations. The following tables illustrate the maturities for non-derivative financial liabilities:
On demand Within 1 year 1 to 5 years > 5 years Total 30 June 2016 2016 2016 2016 2016 2016 $’000 $’000 $’000 $’000 $’000 Trade creditors - 1,146 - - 1,146 Contract retentions - 57 - - 57 Salaries and wages - 34 - - 34 Accrued expenses/suppliers - 195 - - 195 Bonds and security deposits - 697 407 - 1,104 Total - 2,130 407 - 2,536
On demand Within 1 year 1 to 5 years > 5 years Total 30 June 2015 2015 2015 2015 2015 2015 $’000 $’000 $’000 $’000 $’000 Trade creditors - 19 - - 19 Contract retentions - 114 - - 114 Salaries and wages - 251 - - 251 Accrued expenses/suppliers - 636 - - 636 Bonds and security deposits - 900 130 - 1,030 Total - 1,920 130 - 2,050
The Trust manages its budget to ensure it has adequate funds to meet payments as they fall due. In addition, the Trust has policies in place to ensure timely payments are made when due and has no past experience of default. The Trust had no derivative financial liabilities in either the current or prior year.
12H: Market risk Market risk is defined as “the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices” and includes interest rate risk, currency risk and ‘other price risk’. The Trust is not exposed to ‘currency risk’ or ‘other price risk’. The Trust holds basic financial instruments that are exposed to interest rate risk. The Trust’s exposure to the risk of changes in market interest relates primarily to bank accounts with floating interest rates. The table below demonstrates the interest rate sensitivity analysis of the Trust at the reporting date, holding all other variables constant. A 150 basis point change is deemed to be reasonably possible and is used when reporting interest rate risk. HARBOUR TRUST ANNUAL REPORT 2015-16 At reporting date, if interest rates decreased/(increased) by 1.5%, with all other variables held constant, operating results and equity would have been:
Effect on Effect on Change in risk Risk variable variable Profit and loss Equity Profit and loss Equity % 2016 2016 2015 2015 $’000 $’000 $’000 $’000 Interest rate risk Interest +1.5 20 20 49 49 Interest rate risk Interest -1.5 (20) (20) (49) (49)
85 Financial Statements
Note 13: Reporting of Outcomes
Note 13A: Net Cost of Outcome Delivery
Outcome 1 Total 2016 2015 2016 2015 $’000 $’000 $’000 $’000
Expenses 16,932 17,662 16,932 17,662
Income from non-government sector Activities subject to cost recovery 15,717 15,275 15,717 15,275 Total costs recovered 15,717 15,275 15,717 15,275 Other own-source income Interest 1,193 1,540 1,193 1,540 Other 481 979 481 979 Total own-source income 1,674 2,519 1,674 2,519 Net (contribution) of outcome delivery (459) (132) (459) (132)
The Trust has one outcome: Enhanced appreciation and understanding of the natural and cultural values of Sydney for all visitors, through the remediation, conservation and adaptive re-use of, and access to, Trust lands on Sydney Harbour. The net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome. Outcome 1 is describe in Note 1.1. www.harbourtrust.gov.au
86 Note 14: Commitments
Note 14: Schedule of Commitments
2016 2015 BY TYPE $'000 $'000
Commitments receivable Lease rental income1 (29,320) (32,798) Total commitments receivable (29,320) (32,798)
Commitments payable Net GST Payable on commitments 2,534 2,472 Total net GST commitments payable 2,534 2,472
Capital commitments Project commitments2 1,154 5,235 Total capital commitments 1,154 5,235
Other commitments Other commitments3 290 325 Total other commitments 290 325 Net commitments by type (25,342) (24,766)
BY MATURITY
Other commitments receivable Within one year (6,703) (7,259) Between one to five years (12,391) (13,533) More than five years (10,226) (12,006) Total other commitments receivable (29,320) (32,798)
Commitments payable Net GST commitments Within one year 478 150 Between one to five years 1,126 1,230 More than five years 930 1,092 Total net GST commitments 2,534 2,472
Capital commitments Within one year 1,154 5,235 Total capital commitments 1,154 5,235
Other commitments
Within one year 290 325 HARBOUR TRUST ANNUAL REPORT 2015-16 Total other commitments 290 325 Net Commitments by maturity (25,342) (24,766) NB: Commitments are GST inclusive where relevant.
Notes: 1. Commitments receivable consists of tenant lease payments due from the leasing of Trust buildings, plus GST receivable. 2. Project commitments comprise contracts for rehabilitation and conservation works at Trust sites. 3. Other commitments are amounts payable under supply contracts. The above schedule should be read in conjunction with the accompanying notes.
87 Financial Statements
Note 15: Contingencies
Note 15: Schedule of Contingencies There were no contingent assets or liabilities required to be disclosed as at 30 June 2016 (2015 - Nil). www.harbourtrust.gov.au
88 Note 16: Sydney Harbour Conservancy
As disclosed at Note 1 “Consolidation and associated company”, The Sydney Harbour Conservancy (the “Conservancy”), a Trust for which the Sydney Harbour Conservancy Ltd is Trustee, was established on 10th December 2009 and is controlled by the Sydney Harbour Federation Trust.
The objectives of the Conservancy are to: • Preserve the natural environmental value of the Trust sites including activities such as weed and feral animal control, waste minimisation, revegetation of native flora, protection of native biodiversity, the conservation of habitat, soil stabilisation and erosion control; • Encourage and promote enjoyment of recreation and activity within natural surrounds of Trust sites; • Recognise and appreciate the natural and historical significance of Trust sites; and • Provide information, education and research about the natural environment.
The financial position of the Conservancy is as follows:
2016 2015 $ $ Opening balance at 1 July 1,137 1,107 Revenue: - Grants 17,561 - - Donations 1,400 150 20,098 1,257
Less expenses: - Suppliers 150 120 - Project funding to SHFT 17,561 - Closing balance at 30 June 2,387 1,137
Represented by: Cash at bank 2,387 1,137 2,387 1,137 HARBOUR TRUST ANNUAL REPORT 2015-16
89 Appendix 1
Freedom of information The Freedom of Information Act 1982 gives everyone Requests access to documents Commonwealth agencies hold, Any person can lodge a request. A request for a subject to certain exemptions. document must be in writing and provide such information concerning the document requested Document categories as is reasonably necessary to enable the agency to identify the document. There is no application fee for ● Administration matters including personnel and an FOI request. There are no processing charges for recruitment, accounts, purchasing and registers requests for access to documents containing personal ● Planning, architecture and environmental matters information about you. However, processing charges including reports and studies commissioned by may apply to other requests. For more information the Harbour Trust, research, drawings and visit: www.harbourtrust.gov.au/about/policies/ concept proposals freedom-information ● Minutes of meetings of the Harbour Trust and meetings of the community advisory committees Requests should be sent to:
● Reference materials including press clippings, Freedom of Information Officer survey and research materials, documents Sydney Harbour Federation Trust relating to conferences and seminars PO Box 607
● Legal matters including legal documents, MOSMAN NSW 2088 opinions, advice and representations Reporting Information Publication Scheme The Harbour Trust received one application under In accordance with the Freedom of Information Act 1982 the Act during the reporting period. the Harbour Trust publishes information to the public as part of the Information Publication Scheme (IPS). An agency plan showing the information the Harbour Trust has published under IPS requirements is available on the Harbour Trust’s website. For more on the Information Publication Scheme, visit the Office of the Australian Information Commissioner www.oaic.gov.au www.harbourtrust.gov.au
90 Appendix 2
Community Advisory Committee members 2015 Members 2016 Members Cockatoo and Snapper Islands Cockatoo and Snapper Islands Cr Rochelle Porteous, Mayor of Leichhardt (ex-officio) Ms Allison O’Sullivan Cr Angelo Tsirekas, Mayor of Canada Bay (ex-officio) Mr Joe Glascott (deceased) Headland Park Mr Tony Hardy Ms Kate Eccles Mr James Morton Mr Terry Ryan North Head Sanctuary Dr Geoffrey Lambert Middle Head Mr Douglas Sewell The Hon. Tony Abbott MP, Member for Warringah (ex-officio) Woolwich Docks and Parklands Cr Peter Abelson, Mayor of Mosman (ex-officio) Ms Peta Lewis Cdr Paul Gall, Commanding Officer of HMAS Penguin (ex-officio) Macquarie Lightstation Ms Kate Eccles and Marine Biological Station Mr Ian Henderson Dr Robin Derricourt Mr Stewart Reed HMAS Platypus North Head Mr Paul Forward Cr Jean Hay AM, Mayor of Manly (ex-officio) Dr Zena O’Connor Mr Ian Freeman Mr Walt Graham Ex-Officio Members Ms Judy Reizes The Hon. Tony Abbott MP, Member for Warringah Mr Douglas Sewell Cr Peter Abelson, Mayor of Mosman Brigadier (Retired) Vince Williams Cdr Paul Gall, Commanding Officer of HMAS Penguin Woolwich Mrs Jean Hay AM, Chair, Implementation Advisory Group, Northern Beaches Council Cr Richard Quinn, Mayor of Hunter’s Hill (ex-officio) Cr Richard Quinn, Mayor of Hunter’s Hill Mr Philip Jenkyn OAM Cr Toni Zeltzer, Mayor of Woollahra Mr Austin Driscoll Mr Trent Zimmerman MP, Member for North Sydney Ms Peta Lewis Cr Jilly Gibson, Mayor of North Sydney
Woollahra General Members Cr Toni Zeltzer, Mayor of Woollahra (ex-officio) Ms Julie Goodsir Dr Robin Derricourt Brigadier (Retired) Vince Williams Mr Peter Poland OAM Ms Adele Rancan Mr Bob Smith HMAS Platypus Ms Susan Moylan-Coombs The Hon. Joe Hockey MP, Member for North Sydney Ms Jill L’Estrange (ex-officio) Ms Colleen Godsell HARBOUR TRUST ANNUAL REPORT 2015-16 The Hon. Jillian Skinner MP, Member for North Shore Ms Sarah Dinning (ex-officio) Cr Jilly Gibson, Mayor of North Sydney Ms Carole Baker Mr Brian Evesson Mr Paul Forward Mr Denny Linker Dr Zena O’Connor Ms Adrienne Sallay Mr Neil Schafer Captain Chris Skinner Mr Ken Williams 91 Appendix 3
Maintenance, heritage conservation and environmental management projects
All sites Grounds maintenance General building maintenance Services maintenance Fire systems maintenance Pest management Site security
Headland Park Construction of a new commemorative lookout and path Refurbishment and replanting of walking tracks Contract bush regeneration Upgrades to HVAC systems of tenanted buildings Repairs to Chowder Bay Wharf Feral animal control Bushfire hazard reduction Ongoing maintenance to the houses Minor internal fitouts by tenants External and internal painting of tenanted buildings
Cockatoo Island Re-pointing of the chimney of the Powerhouse and refurbishment of the original lightning conductors Public safety works Conservation of historic machinery and planting of gardens by volunteers Installation of CCTV to monitor movements of crowds and vessels in the vicinity of the Parramatta Wharf and pedestrian entry to Cockatoo Island Replacement of the submarine potable water service between Cockatoo Island and Elkington Park, Balmain Geotechnical investigation and repairs to the cliff faces and tunnels Ongoing replacement and upgrading of services including electricity, water, fire services and telephone
North Head Sanctuary Repairs to the historic stone wall Repairs and maintenance of walking tracks Maintenance to the houses Repairs to the underground Plotting Room and reconstruction of a building at the Miniature Range Upgrade to electrical supply to Substation near Building 1 Conservation and reconstruction of historic military equipment by volunteers Propagation and planting of local species by the NHSF Contract bush regeneration www.harbourtrust.gov.au Feral animal control 92 Woolwich Dock Contract bush regeneration Weed removal and replanting of the Upper Horse Paddock and Goat Paddock Feral animal control
Platypus Ground remediation works continued Landscaping of the site
Macquarie Lightstation Contract bush regeneration and maintenance Weed removal and replanting
Former Marine Weed removal and replanting as a result of storm damage to Marine Biological Biological Station Station Park Replacement of the boundary fence between the adjoining residential property and the Park
Snapper Island No major works were carried out during the year, although the Department of Finance completed some minor building remediation works HARBOUR TRUST ANNUAL REPORT 2015-16
93 Compliance Index
Compliance The table below shows this report’s compliance with the Public Governance, Performance and Accountability Act (2013) and the PGPA Rule 2014.
Letter of transmittal 1
Legislation establishing the body 9
Objects and functions of the entity 8
Purpose of the entity 8, 14
Responsible Minister 9
Ministerial Directions 54
Annual Performance Statements 14-27
Information on the accountable authority 10-13, 51
Members of the accountable authority 10-13, 51
Organisational structure 9
Location 9
Corporate governance 50-54
Significant activities and changes affecting the authority 4-54
Judicial decisions and reviews 54
Indemnities and insurance 51-52
Compliance index 94 www.harbourtrust.gov.au
94 Index
A access and safety 53 Comprehensive Plan (Harbour Trust) 15, 33 accommodation 6, 16, 26, 27, 41, 42, 48 consultants 52 Advertising and market research 42 contracting 52 Annual Performance Statements 6, 14-21 corporate governance 51 Asset Management Plan 15, 21 Corporate Plan (2015-19) 6, 14-21 Audit, Risk and Compliance Committee 51 cultural partnerships 19, 26, 41, 42 audit report 56-57 Australian School of Pacific Administration (ASOPA) 31 D Australian Wildlife Conservancy 30 Defence of Sydney artillery display, North Head Sanctuary 19 awards 7 Department of the Environment 51 Development applications 22-25 B Disability Action Plan 54 Biennale of Sydney 6, 19, 32, 41, 45 Board E - meetings 25, 51 ecologically sustainable development 33 - members 5, 10-12, 51 education 41, 42 bushfire risk management 30, 32 employees 52 bushland management 30 energy consumption 34 business development 6, 7, 16, 27, 47-48 Energy Efficiency in Government Operations(EEGO) Policy 34 Engagement 18-19, 40-45 C Environment Protection and Biodiversity Conservation Act 1999 15, carbon footprint 38 32, 33 Chair, forward 4-5 environmental assessments 32 Child care regulations and service approvals 22-25 environmental performance 33-39 Chowder Bay 6, 19, 29, 41, 47 equity and diversity 54 Chowder Bay Wharf 29, 92 ethics 51 Cockatoo Island 4, 6, 15, 16, 18, 19, 22, 26, 27, 29, 30, 31, 32, 38, 41, executive director 6-7, 9, 51 42, 45, 47, 48, 52, 92 - accommodation 6, 16, 26, 27, 41, 42, 48 F - Accommodation Open Day 6, 42 Fantasea Harbour Hike 41 - campground 48 financial management 20 - community liaison 19, 27 financial performance 4, 6, 27 - conference centre upgrade 48 financial statements 57-89 - Convict Footprints on Cockatoo Island 4 financial summary 27 - convict workshops 4, 27 former School of Artillery 29 - crane restoration 7 fraud control 51 - education program 41, 42 Freedom of information 90 - Fitzroy Dock 7, 29 Freedom of Information Act 1982 90 - Ghosts of Biloela smart phone app 4 fuel consumption 37 - guided tours 6 functions 8 - heritage cranes 7 - Justin Bieber concert 6, 45 G - management plan 15, 32 Georges Head Lookout 6, 29 - marine facilities 6, 47 Georges Heights 6, 29, 41, 42 - marketing ,41, 42 Global Reporting Initiative indicators 33 - Powerhouse chimney restoration works 7, 29, 42, 52, 92 Green Army 30 - Sutherland Dock 6, 29, 47 Greenfleet 38 HARBOUR TRUST ANNUAL REPORT 2015-16 - UNESCO World Heritage listing 4, 29, 32 grants 6 - visitor centre 45 greenhouse gas emissions target 38 - visitor data and research 18, 19 guided tours 6, 42, 45 - volunteers 7, 31, 45 - water main installation 7, 29, 92 H Code of Conduct 51 HarbourSculpture, Woolwich 42 Commonwealth Procurement Rules 52 Headland Park, Mosman 6, 16, 19, 26, 27, 29, 30, 31, 41, 45, 47, 92 communications 26, 41, 42 heritage partnerships 19, 42 Community Advisory Committees 6, 15, 19, 22, 25, 32, 33, 41, 45, Heritage Strategy 15, 32 54, 91 historical interpretation 41 community consultation 4, 6, 18, 19, 26, 27, 32, 33, 41, 45 human resources 20, 52 complaints policy and procedures 22, 25 compliance index 94 95 I Indemnities 51-52 Portfolio Audit Committee 51 Indigenous Employment Strategy 54 procurement 52 Insurance 51-52 programming 36-37 interpretation partnerships 19, 41, 42 Public, Governance, Performance and Accountability Act 2013 1, 6, 14, 27, 51, 54 J Public, Governance, Performance and Accountability Rule 2014 51 Judicial decisions and reviews by outside bodies 54 Public interest disclosure 52 Public Interest Disclosure Act 2013 52 K public programs 32, 33, 36 Key performance indicators 6, 15-25 purpose 8,
L R landscape maintenance 31 rangers 45 Learning and Development Plan 52 Reconciliation Action Plan 54 leasing 4, 6, 15, 16, 26, 27, 41, 47 Regulator Performance Framework 22 legislation 9 renewable energy 38 licencing 4, 6, 15, 16, 27, 41, 47, 48 residential property portfolio 47 liquor licencing and permits 22-25 risk management 53 Royal Australian Artillery Historical Company (RAAHC) 6, 19, 42 M Macquarie Lightstation, Vaucluse 30, 31, 42, 45, 93 S management plans 4, 6, 15, 32, 33 SIMS Discovery Centre, Chowder Bay 6, 19, 41 map of sites 9 Sir Roden Cutler VC Artillery Research Centre 6, 19, 42 Marine Biological Station, Watsons Bay 30, 31, 93 sites 9, 29-31, 92-93 marketing 18, 26, 41 Snapper Island 30, 93 media 6, 26, 42, 45 staff learning and development 52 Middle Head 4, 6, 15, 29, 32, 33, 41, 45 staffing 20, 52 - open day 4, 6, 32, 33, 41 Sydney Gold honey 19, 41 - management plan 4, 6, 15, 32, 33 Sydney Harbour Conservancy 16, 41 Minister for the Environment 4, 5, 9, 32 Sydney Harbour Federation Trust Act 2001 1, 9, 32, 45, 52 Minister for the Environment and Energy 1, 5, 32 Sydney Institute of Marine Science (SIMS) 6, 19, 41 ministerial directions 54 Morts Dock and Engineering Company 30 T tenants 6, 16, 29, 41, 47, 92 N Tender Review Committee 52 native fauna management 31 tendering 52 National Trust Heritage Festival 42 Third Quarantine Cemetary, North Head Sanctuary 6, 27, 30, 32, 42 NSW National Parks and Wildlife Service (NPWS) 4, 6, 29, 31, 33 NSW Office of Environment and Heritage (OEH) 31 U North Fort 6, 29, 30, 42, 45 Underbelly Arts Festival 6, 19, 41, 45 North Head Sanctuary 4, 6, 16, 18, 19, 22, 27, 29, 30, 31, 32, 38, 42, 45, 47, 48, 92 V North Head Sanctuary Foundation 31 Vacation Care programs 42 Vantage Points exhibition 41 O venue hire 7, 16, 19, 26, 27, 41, 47, 48 objectives 8 vision 8 operations 50-54 visitor experience 18, 19, 27 organisational structure 9 volunteers 5, 7, 18, 19, 31, 45
P W Parliamentary Secretary to the Minister for the Environment 5 walking tracks 6, 29, 30, 92 pest fauna management 31, 92, 93 waste generation 39 photovoltaic (PV) arrays 38 waste recycling 39 Platypus site, Neutral Bay 4, 6, 7, 15, 26, 27, 30, 31, 32, 33, 41, water consumption 39 42, 45, 93 Work Health and Safety Act 2011 53 - remediation project 4, 7, 26, 30, 93 Workplace health and safety 15, 52, 53 - background studies (noise and traffic) 32 Workplace Health and Safety Committee 45, 53
www.harbourtrust.gov.au - open day 4, 6, 32, 33, 41, 42, 45 Woolwich Dock and Parklands 30, 31, 42, 93 - management plan 4, 6, 15, 32, 33 96
Sydney Harbour Federation Trust Annual Report 2015-2016